Executive Director of the Institute of Energy Security, Nana Amoasi VII, has disclosed that Ghana stands to get its name tarnished once the Independent Power Producers (IPPs) make good their threat by shutting down operations.
According to him, the impact of such a move by the IPPs will not augur well for Ghanaians and businesses alike.
“If we allow the power producers to shut down, the impact on the country will be great and it will be dire. First, it’s going to bring about some reputational damage on us as a country. It will go to show government’s poor handling of the power sector, [and] that it was not able to make interventions as and when it is required.”
Nana Amoasi VII
Furthermore, Nana Amoasi VII stated that the shutdown of operations will also set a bad precedent. He explained that on numerous occasions, these IPPs have given indications of shutting down anytime their debts are compounded.
“This time, if they are able to make good their word because of government’s failure to intervene, then of course it’s a bad precedent. At any point in time, they can use the same truth of measure, to threaten us as a country.”
Nana Amoasi VII
Moreover, he noted that should the IPPs go down and outages are extended, it would mean that GRIDCo will be making revenue losses, likewise ECG and NEDCo. Additionally, he explained that there will be economic loss because of extended power outages.
“So, the damages are huge; let’s add even public safety. It will be threatening if the outages are extended…”
Nana Amoasi VII
Commenting on why government is struggling to reach a consensus with IPPs before the July 1 deadline, Nana Amoasi VII indicated that it will be difficult to speak for government as to why it is unable to make swift intervention when it comes to these matters. However, he highlighted that on the part of the IPPs, IES has found that they had a “posture of no stories, no policies and a posture of no theories”.
“All they expect is make commitment to our payments and we won’t shut down. We’ve gotten the indication that all the IPPs have issued a zero nomination to GRIDCo as a transmitter. It means they have declared unavailability at this point in time and we expect government to engage as soon as possible to avert this situation.”
Nana Amoasi VII
Government urged to engage IPPs as soon as possible
To avert a power crisis, the executive director of IES called on government to engage IPPs as soon as possible. He revealed that if government calls their bluff, it does so at its own risk.
“… This time around we see the posture from the IPPs as a strong one and determined to shut down if government fails. I’m sure if government should call them to the table right away, and make some commitment to the payment, they won’t make good their word. Engagement is what is needed at this point.”
Nana Amoasi VII
Regarding businesses, Nana Amoasi VII revealed that they are not alien to power outages as they have experienced it one way or the other. Nonetheless, he urged them to be prepared in order for their businesses to stay afloat.
“It happens once in a while and most of them have backups when it comes to power generation. We expect them to get that backup ready and also to ensure that their generators are filled to the brim in terms of fuel because we’re also getting the indication of fuel shortages in town because of tanker drivers refusing to work for reason of bad roads… Also, you can plan your processing arrangements if you are a factory to make sure that you follow the load shedding timetable if ECG is forced to put out one.”
Nana Amoasi VII
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