The Institute for Energy Security (IES) has asked the government to reconsider the proposed bill to merge the Volta River Authority (VRA), Bui Power Authority, Electricity Company of Ghana (ECG), and Northern Electricity Distribution Company (NEDCo).
According to IES, the government should focus on strengthening the power entities rather than dismantling them.
In a statement issued by the Executive Director, Nana Amoasi VII, noted that the proposed merger and restructuring of Ghana’s power sector may have its proponents but the risks far outweigh the benefits in its current form.
“The focus should be on stabilizing and strengthening the existing institutions such as the VRA, Bui Power Authority, ECG, and NEDCo, rather than dismantling them.
“We urge the government to reconsider the bill and work towards solutions that preserve Ghana’s energy security, affordability, and long-term sustainability,” portions of the statement read.
Additionally, IES has urged the government to urgently resolve the outstanding debt issues between VRA, ECG, and VALCO.
“These entities’ failure to meet their payment obligations has created a severe liquidity crisis for VRA, and this must be corrected before any structural changes are made,” IES noted.
The bill seeks to combine ECG with NEDCo to establish an independent Thermal Power Authority from VRA’s thermal plants.
The government’s plan includes consolidating thermal plants under a Ghana Thermal Authority and hydro plants under a Ghana Hydro Authority, as outlined in a bill currently before Parliament.
But the staff groups of VRA have kicked against it, arguing that the proposal are not in the best interest of Ghanaians and could have severe consequences for the VRA and the nation.
Below is the full statement from IES:
Source: Adomonline.com
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