The Institute for Energy Security (IES) has raised concerns about a draft bill proposing the merger of key energy institutions, including the Volta River Authority (VRA), Bui Power Authority, the Electricity Company of Ghana (ECG), and the Northern Electricity Distribution Company (NEDCo).

The bill also suggests creating an independent Thermal Power Authority.

Meanwhile, VRA staff have strongly opposed the proposed changes, fearing that the merger and possible privatization of assets could harm the country’s energy security and make electricity less affordable.

They argue that separating VRA’s thermal power assets would weaken the organization’s financial health and disrupt electricity supply to underserved regions.

IES supports these concerns, emphasizing that privatizing VRA’s thermal assets could threaten its financial stability.

Nonetheless, the Institute also highlighted the issue of unpaid debts from ECG and VALCO, which are already affecting VRA’s liquidity.

IES recommends that the government engage with all stakeholders, resolve outstanding debt issues, and reconsider the creation of a separate Thermal Power Authority to avoid risking Ghana’s energy security and affordability.

Check out the release below:

Concerns Over the Proposed Merger of the Volta River Authority (Vra), Bui Power Authority, Ecg, And Nedco U… by Dennis Adu on Scribd