… Citizens fear rising electricity costs, job losses
The Herald’s investigation into the government’s plan to merge the Volta River Authority (VRA) with the Bui Power Authority, reveals a concerning lack of transparency. Despite official claims that the merger aims to focus on hydropower, insiders suggest the real agenda is to hand over VRA’s thermal assets, operations, and profit streams—including the lucrative AMERI plant—to a private company. Thermal operations, have long been the VRA’s main revenue source.
Reports indicate that Genser Energy, is involved in a scheme to take over VRA’s thermal operations.
Genser Energy has already secured contracts with several mining companies and recently expanded its power supply to Côte d’Ivoire.
Additionally, the company benefits from a highly favourable gas deal with the state, arranged by the Akufo-Addo government through the Ghana National Petroleum Corporation (GNPC). Many Ghanaians see this potential transfer of VRA’s assets as a grave injustice.
Proponents of the merger, have downplayed VRA’s role, arguing that the authority lacks the necessary resources and expertise for thermal power production.
However, this claim has been debunked, with critics, highlighting VRA’s extensive experience, which, includes the operation of TAPCO (since 1997), TICO, and AMERI.
In fact, many of the country’s independent power producers (IPPs) have poached key thermal energy experts from the VRA.
Opponents of the merger, argue that beyond the threat of job losses, putting power production entirely in private hands could drive electricity prices beyond the reach of ordinary Ghanaians. VRA, as a public entity, is viewed as a critical check on the profit-driven motives of private companies.
The potential shift towards private control of power generation has sparked fears of skyrocketing energy costs, leaving many questioning the government’s true intentions.
Last week, the chairman of the Senior Staff Association of the Volta River Authority (VRA), once again raised concerns over the proposed merger with the Bui Power Authority, questioning its effectiveness in reducing energy costs for consumers.
This follows the government’s proposed bill to merge the Electricity Company of Ghana Limited (ECG), Bui Power Authority, Northern Electricity Distribution Company (NEDCO), and the VRA into two separate entities.
In an interview on Eyewitness News on Citi FM on Friday, Theophilus Tetteh Ahia, highlighted significant issues within the energy sector, emphasising that VRA currently offers the lowest cost per kilowatt hour in Ghana’s market.
He pointed out that Independent Power Producers (IPPs) contribute about 50% of the country’s energy demand, making the merger proposal questionable.
“There is a big problem in the sector. The VRA today is the cheapest in terms of cost per kilowatt hour in the market space in Ghana. The IPPs are there and contribute about 50% of the energy demand of this country.
“So when we say we are merging Bui and VRA, that notwithstanding again, the cost per kilowatt hour at Bui is far higher than VRA.”
“So the agenda to say when I put Bui and VRA together it is going to bring the cost down to the consumer is neither here nor there. How will that happen?” Ahia stated.
Senior staff of the VRA, together with members of the Public Services Workers Union (PSWU) under the Trades Union Congress (TUC), held a protest at the VRA’s headquarters in on Wednesday, September 18, 2024.
A bill, currently before Parliament, also proposes combining the ECG with the Northern Electricity Distribution Company (NEDCo) and the establishment of a new independent Thermal Power Authority using VRA’s thermal plants.
The VRA Senior Staff Association, have been demanding the immediate withdrawal of the bill, raising concerns about the future strength and viability of the VRA if the merger goes ahead.
“Our demand is just for the bill to be withdrawn for a peaceful existence because VRA has been established for all these years…The bill that has been laid in parliament should be withdrawn and that is all we are looking for,” he stated.
He added: “We will continue praying seeking the face of God, and we will do everything possible to resist it.”
The workers insist “the Volta River Authority was built for the people and not the highest bidder.”
“There is an existing Memorandum of Understanding between VRA and NEDCo that guarantees 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 Hydro dams are not the only assets considered in this amalgamation.
The rest of the bills being pushed by the Energy Ministry, include the Ghana Thermal Authority Bill, Ghana Hydro Authority Bill, Ghana Power Distribution Authority Bill, Ghana Nuclear Power Corporation Bill, and Ghana Energy Regulatory Authority Bill.
However, the VRA workers, contend that these changes are not in the best interest of Ghanaians and could have serious negative impacts on both the VRA and the nation as a whole.
In a statement released on Wednesday, the staff groups, stressed that the proposed reforms could weaken VRA’s contributions to the national grid and compromise energy security.
