The Staff Groups of the Volta River Authority (VRA), a state-owned power generation company, have expressed strong opposition to the government’s plan to restructure the power sector, which will lead to the merger of the two hydropower generation companies—VRA and Bui Power Authority.
The plan will also lead to the merger of the Electricity Company of Ghana (ECG), which supplies power in the southern part of Ghana, with the Northern Electricity Distribution Company (NEDCo), which is responsible for power supply in the Northern Regions of Ghana.
There will also be the establishment of an independent Thermal Power Authority to take over the running of VRA’s thermal plants.
The groups argue that these decisions are not in the best interest of Ghanaians and could have severe consequences for the VRA and the nation.
The groups emphasised that the proposed changes could undermine the VRA’s contributions to the national grid and security.
In a statement issued on Wednesday, they recalled a meeting with the VRA Board Chairman in May 2024, when assurances were given that there were no plans to privatise the Thermal Assets of the Authority.
However, recent media reports about the proposed bills have raised concerns among the staff who feel excluded from the decision-making process.
They also noted that at a Joint Consultative Committee (JCC) meeting on August 29, 2024, the VRA management admitted to being part of a Technical Committee that worked on a report for the Ministry of Energy, proposing the VRA as a Holding Company.
Despite this, there had been no official communication about the mergers or the creation of a Thermal Power Authority.
The staff groups believe that the proposed actions are a scheme to privatise the Thermal Department, making it easier for private entities to take over valuable Ghanaian assets.
They argue that VRA was established to generate electrical power through various sources, not just hydro and that restricting its operations could lead to its collapse.
The VRA staff is calling for immediate action to address these issues and ensure that the interests of Ghanaians and the VRA are protected.
“The Volta River Authority was built for the people and not the highest bidder. There is an existing Memorandum of Understanding between the VRA and NEDCo that guarantees the VRA’s continuous support in terms of power supply and the expansion of other infrastructure.
“The MOU has expired, requiring a renewal, but management has been rendered powerless and has no interest in the renewal to guarantee continuous support to NEDCo for no apparent reason.
“The support the VRA gives to the NEDCo is to ensure that our brothers and sisters in the NEDCo catchment areas of the country enjoy electricity consistently without any hindrance.
“The separation of NEDCo from the VRA can affect the supply of power and cash inflows for the VRA since the ECG is not consistent with its payment obligations to the VRA.
“We see this attempt as ‘A GRAND SCHEME TO SELL VRA ASSETS TO CRONIES’.
“The Staff of VRA, with the support of Ghanaians, shall fearlessly resist and use all legitimate means at our disposal to ensure that the people of Ghana are not robbed of affordable electric power and energy security under the guise of mergers and privatisation,” they further stated.
Source: https://energynewsafrica.com