Ghana’s power sector struggles continue as Early Power warns of cutting electricity supply due to the Electricity Company of Ghana’s (ECG) outstanding debt of $48,215,405.89.
In a letter to the Acting Managing Director of ECG on Friday, February 28, 2025, Early Power raised concerns over ECG’s failure to make payments, noting that $47,249,898.93 of the total debt was overdue.
The letter, also copied to the Minister for Finance, the Minister for Energy, the Executive Secretary of the Public Utilities Regulatory Commission (PURC), and the Board Chairman, warned of serious financial consequences for the power supplier.
“As a result of ECG’s default in payment, the Seller finds itself in a precarious financial position and will not be able to meet its debt service obligations and operating costs,” parts of the letter stated.
Early Power has set a firm deadline of February 28, 2025, for the immediate settlement of the overdue amount.
The company warned that failure to meet this deadline would compel them to enforce remedies outlined in the Power Purchase Agreement (PPA) and the Power Compact Operations Agreement (PCOA).
President John Dramani Mahama has revealed that state-owned enterprises Electricity Company of Ghana (ECG) and the Ghana Cocoa Board (COCOBOD), both are struggling under heavy debt burdens.
John Mahama detailed the Electricity Company of Ghana owes GHS68 billion while the Ghana Cocoa Board owes GHS32.5 billion.
According to John Mahama, the staggering debts are a glaring sign of almost deliberate and, in some cases, reckless mismanagement of our resources.
Delivering his first State of the Nation Address in his second term to Parliament on Thursday, February 27, President Mahama described a grim picture of Ghana’s huge debts.
John Mahama stated, “We are saddled with staggering debts and glaring signs of almost deliberate and, in some cases, reckless mismanagement of our resources.
In addition to the public debt, which amounts to a staggering GHS721 billion, several state-owned enterprises are also in debt, including the ECG, which owes GHS68 billion”, he added.
Read Letter Below:
