Comprehensive  Ghana Oil and Gas news, information, updates, analysis

News in Brief

Terminate some power agreements – ACEP to gov’t

  • SOURCE: | qwesa2big
  • imagesEnergy think-tank has urged the Nana Addo-led government to cancel agreements with Independent Power Producers (IPPs) who have not been able to raise funds after signing the agreement.

    The Head of Policy Unit at the African Center for Energy Policy (ACEP), Dr. Ishmael Ackah explained that most of the agreements were reached at a period when the country was going through energy crisis and since some of the IPPs were not performing it was better to cancel their agreements.

    “So we signed a contract with you three years ago when we were having these challenges and three years after when the situation is becoming a little stable you still not perform  your part of  the deal then it is better we either cancel it or convert it to a normal thermal plant agreement,” he said.

    READ ALSO: Find alternative funding for new regions – Economist tells Ofori Atta

    “Normally under such agreements, we pay for high capacity charges and it so many with many emergency plants. Some of the IPPs, the agreement we signed was that we signed it more like an emergency plant agreements,” he added.

    When Ghana was going through the power crisis under the Mahama led administration, government signed agreements with a number of independent power producers under a situation of emergency.

    READ ALSO: Replace tax cuts with realistic sources of revenue – Analyst

    However, former Finance Minister Seth Terkper before he left office revealed that government has put a halt on signing new power agreement with independent companies.

    But Dr Ackah said the IPPs signed must be cancelled of reviewed to save Ghana some money.


    Leave a reply

    About Us
    Reporting Oil and Gas project was launched on 4th June 2009 at Takoradi, Western Region, Ghana by Penplusbytes ( with the vision of providing a one stop online information and knowledge about Ghana’s oil and gas sector read more
    Twitter Activity Stream

    Partners We are proud to be associated with:

    Skip to toolbar