Ghana’s power sector is facing renewed challenges as Early Power has threatened to cut its electricity supply due to the Electricity Company of Ghana’s (ECG) failure to settle an outstanding debt of $48,215,405.89.
In a letter addressed to the Acting Managing Director of ECG on Friday, 28th February 2025, Early Power expressed concern over ECG’s default in payment, highlighting that $47,249,898.93 of the amount was overdue.
The letter, which was 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 severe financial repercussions for the power provider.
“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,” the company stated.
Early Power has now issued a firm demand for the immediate settlement of the overdue amount, setting a deadline of 28th February 2025.
The company warned that failure to meet this deadline would leave them with no choice but to invoke remedies available under the Power Purchase Agreement (PPA) and the Power Compact Operations Agreement (PCOA).
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