By: Akua Oteng Amponsah
The Volta River Authority (VRA) Staff Group has pledged to oppose the energy bill laid in parliament, which proposes merging VRA with Bui Power under the Energy Ministry.
A measure that will significantly restructure Ghana’s energy industry was sent to parliament by the Energy Ministry. By merging the Volta River Authority (VRA) Hydro Power Plants and the Bui Hydro Authority, the law aims to establish the Ghana Hydro Authority.
It also intends to separate VRA’s thermal assets to establish the “Ghana Thermal Authority” and combine the Northern Electricity Distribution Company (NEDCo) and Electricity Company of Ghana (ECG) into the “Ghana Power Distribution Authority.”
The bill seeks to reduce government funding, boost private sector involvement, increase efficiency, and lower consumer power generation prices.
In an interview with Kasapa News Akua Oteng Amponsah, the National Women’s Coordinator for the VRA Staff group, specifically the Senior Staff Association Madam Victoria Jemima Mends, stated that the move came as a surprise, as stakeholders, including the group, were not consulted before the bill’s submission.
The group contends that VRA’s thermal, hydro, and Bui hydro operations are already effective.
According to the World’s Electricity Utility Cost Group (EUCG), VRA Hydro ranks third globally in terms of technical efficiency with a 95% availability rate, 98% dependability rate, and less than 1% forced outage, compared to a global forced outage range of 2% to 5%.
The group questions what additional performance enhancements the Energy Ministry is looking for.
Furthermore, according to SIGA’s 2019 report, Bui Hydro Authority (BHA) has been profitable. Despite having a 400MW peaking hydro plant, the Authority has made significant strides in solar technology and is pushing the boundaries of solar while building a large capacity in solar technology.
She added that it is best for BHA to be left alone to promote competition and growth, just like VRA. Additionally, if the merger creates Ghana Hydro Authority, the company’s survival would be severely hampered
She pointed out that the Ghana Thermal Authority was formed by dividing the VRA Thermal Assets with the goal of eventually privatizing it. Thus, 75% of the nation’s energy needs will be under the authority of Independent Power Producers (IPPs). This might be dangerous for the country’s energy security. For the benefit of the Ghanaian people, VRA is a national asset. VRA will never shut down its plants because the ECG is not paid.
On his part, the Vice Chairman of the Staff Group Mr. Francis Deku, asserted that VRA would never shut down its power plants because ECG had not paid. He claimed that although VRA bills ECG 180 million Ghana Cedis per month, the Cash Waterfall Mechanism (CWM) often pays 30 million Ghana Cedis.
“Every month, ECG is scheduled to contribute one billion Ghanaian cedis to the CWM; of this amount, more than fifty million dollars (800 million Ghanaian cedis) are paid to the IPPs first, with the remaining amount going to the state institutions, such as VRA, Bui, GRIDCo” he added.
He conveyed his appreciation to the Energy Ministry for putting the controversial measure on hold, but stressed that the group is still determined to completely withdrawing it.
He promised that they will vigorously defend VRA’s rights and stand up for Ghanaians and unborn infants.
“We demand that the proposedbills be completely withdrawn, not just suspended, while we wait for parliament to make a decision on the matter.
“We are committed to doing the right thing in order to protect VRA from the meddling of succeeding administrations” he added
