The prolonged inter utility legacy debt of $203 million component of the power sector debt within the energy sector accrued by the end of 2016 has been finally set off.
The debt, which involved both state owned corporations and Independent Power Producer, Sunon Asogli Power Ghana Limited affected the operational and financial performance of all parties involved within the power supply chain.
A statement signed by Mr Elikplim Kwabla Apetorgbor, Sunon Asogli Manager of Energy Trading, Research and Regulatory Affairs pand copied to the Ghana News Agency in Accra said: "It became very difficult for the private sector organization to obtain financial support to sustain its business operation, commitment to future investments and also affected their shareholders confidence."
It said as a result of collaboration among the Government of Ghana through the Ministries of Finance and Energy, The Electricity Company of Ghana Limited (ECG), Volta River Authority (VRA), Ghana National Gas Company Limited (GNGC) and Sunon Asogli Power (Ghana) Limited, the prolonged inter utility legacy debt in respect of gas invoices was finally settled.
The statement said the support from government through its agencies demonstrated its zeal to ensure that all corporations within the sector had a sound and healthy financial status to sustain their operations.
It said the settlement of the debt would contribute to the improvement of the credit rating of the various organization within the energy sector seeking for credit facilities from both domestic and international Banks.
"It will further reduce the indebtedness of government, ECG, VRA, GNGC and Sunon Asogli Power Limited making their books much better than before," statement added.
It said: "We will continue to collaborate with all the parties within the energy sector and the Government in sustaining and meeting the electric power demand in Ghana."