VRA senior staff raise red flags over proposed energy merger bills

The Senior Staff Association (SSA) and the Divisional Union of Public Services Workers Union (PSWU) of the Volta River Authority (VRA), under the TUC Ghana, have issued a stern notice of intended protests against proposed energy sector merger bills currently before Parliament.

In a letter dated September 9, 2024, addressed to the Chief Executive, the staff expressed concerns over an attempt made on September 3, 2024, to introduce energy sector merger bills for parliamentary consideration by the Ministry of Energy.

The letter stated, “We unequivocally oppose the proposed Merger Bills and are prepared to use all lawful means to resist their passage.” The staff highlighted that the bills are purported to: Improve operational efficiency, Attract private-sector financing for state-owned power plants, Minimize government financial support, and Reduce the cost of power generation, ultimately lowering electricity prices for consumers.

However, VRA staff argue that the proposed bills would: Obliterate the VRA, a blue-chip energy producer, Lead to the separation and sale of VRA’s thermal power plants to private individuals with political ties, Merge the Northern Electricity Distribution Company (NEDCo) with the Electricity Company of Ghana (ECG), depriving VRA of essential cash flow to sustain its operations.

The staff warned that they would embark on a series of lawful actions to alert the Ghanaian public to what they perceive as an attempt to privatize and break up strategic state assets. They emphasized, “We will do everything within our legal rights to stop this agenda to fragment the VRA and make it easier for sale to private entities.”

The unions stressed that VRA has been efficiently managing its diverse energy generation portfolio and should be allowed to continue its operations without third-party interference.

Below is their letter

SENIOR STAFF ASSOCIATION (SSA) & DIVISIONAL UNION OF PUBLIC SERVICES WORKERS UNION (PSWU) OF TUC, GHANA VOLTA RIVER AUTHORITY

September 9, 2024

The Chief Executive

Volta River Authority

Accra.

Dear Sir,

NOTICE OF INTENDED ACTIONS BY VRA STAFF IN PROTEST AGAINST THE PROPOSED ENERGY SECTOR MERGER BILLS

The attention of Staff of the Volta River Authority (VRA) and the Northern Electricity Distribution Company (NEDCo) has been drawn through the media, to the attempt made on September 3, 2024, to lay some Energy Sector Merger Bills before Parliament for consideration by the Ministry of Energy.

We wish to state unequivocally that we vehemently oppose the proposed Merger Bills and consequently, Staff have resolved to utilize all available lawful means to resist the passage of these Bills which are purported to:

1. Improve operational efficiency.
2. Attract private sector financing into the operations of state-owned power plants.
3. Minimize financial support from the government and

• Minimize the cost of power generation and ultimately the cost of power supply to consumers.

Our opposition to the proposed Merger Bills is based on:

1. Attempt to obliterate the blue-chip energy producer, VRA from existence.

• Separation of the VRA Thermal Power Plants and subsequently sell to private and faceless politicians.

• Merger of NEDCo and ECG as a facade to deny VRA the needed cashflow support to survive.

PLEASE TAKE NOTICE AND NOTICE IS HEREBY SERVED, that staff of the Authority will embark on a series of legitimate actions, to bring to the attention of the Ghanaian public the attempt to ultimately sell strategic state assets under the guise of privatization and further do anything lawfully within our means to STOP the agenda to decimate the VRA into smaller units to make it easy for sale to private individuals and institutions.

We say with emphasis that VRA is efficient in operating and managing its assets and thus should be allowed to operate its diverse generation mix, devoid of unwarranted third-party agreements.

Yours faithfully,

Cc.

Managing Director, NEDCo

All Staff