The Senior Staff Association (SSA) of the Volta River Authority (VRA) has expressed concerns about the impact of the revised Cash Waterfall Mechanism on the company’s operations.
The Cash Waterfall Mechanism was implemented in April 2020 and revised in 2023 as part of the Energy Sector Recovery Programme (ESRP) to ensure fairness and transparency in distributing energy revenues among electricity distribution companies.
However, the Senior Staff of VRA contends that, this objective is not being met in practice. They highlight that Independent Power Producers (IPPs) receive a fixed monthly payment of $43 million, which they believe is disproportionately high.
In a statement, the association pointed out that despite the VRA generating 67.5 percent of the power for the national grid compared to the IPPs’ 32.5 percent, the revenue distribution favours the IPPs.
“Currently, all available plants are running 24/7. That cannot be said about IPPs, yet at the end of the month, they are given $43 million which is more than half of all the payments made into the CWM by the ECG,” portions of the statement said.
“Will IPPs accept this kind of treatment meted to VRA?” the Association quizzed.
The SSA also rejected calls for the privatization of the VRA, emphasizing its critical role in ensuring energy security for Ghana.
“We wish to reiterate that VRA is the only strategic state-owned power utility providing and guaranteeing the energy security for the people of Ghana and for that matter none of its assets must be put on sale.
“The Authority is efficient in operating and managing its assets and thus should be allowed to operate its diverse generation mix, devoid of any unwarranted privatisation.”
Read full statement below:
READ ALSO:
- Cecilia Dapaah’s stolen money: I was shocked – Husband
- IAWPA celebrates 40 women at International Woman of Peace Award