…Workers
The Senior Staff Association of the Volta River Authority (VRA), has accused the government of deliberate attempts to separate the VRA thermal assets for onward sale to private investors and faceless politicians with its proposed energy bills before Parliament.
The proposed bills seek to merge the Electricity Company of Ghana Limited (ECG), Bui Power Authority, Northern Electricity Distribution Company (NEDCO), and the VRA, into two separate entities.
Addressing journalists in Parliament yesterday, Thursday, October 17, the Chairman of the Senior Staff Association of the VRA, Theophilus Tetteh Ahia, urged Members of Parliament (MPs) to kick against the proposed energy bills, arguing that they do not serve Ghana’s interest.
“The merger is not in the best interest of this country. As we are all aware, ECG is facing challenges and is not able to make payments.
“As we speak today, ECG’s indebtedness to the VRA is over GH¢2 billion and that of the IPPs is over $1.5 billion, and so how can we achieve the objective as it is being espoused in the bills that we are bringing efficiency and reducing the cost of electricity and also reducing the government’s financing of this sector?
“We are saying that is not the true objective. The real objective is the separation of the VRA thermal asset and eventual sale to private persons.”
The Herald’s investigation into the government’s plan to merge the 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 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.
On the issue the proposed merger between the Public Utilities Regulatory Commission (PURC) and the Energy Commission of Ghana, the Minister of State at the Ministry of Energy, Herbert Krapa, insists stakeholder engagement is ongoing.
This proposal, which has gained traction among industry experts and policymakers, aims to streamline regulatory functions, reduce operational costs, and eliminate potential overlaps in the oversight of Ghana’s energy sector.
The Institute of Energy Security is one leading voice that has expressed support for the merger, arguing that combining the two regulatory bodies into a single entity will not only result in cost savings but also enhance the overall efficiency and effectiveness of energy regulation in Ghana.
In a media interview following an event to mark Customer Focus Week at the Energy Ministry, Mr Krapa indicated that the government hopes to get an efficient regulator after the stakeholder consultation.
“My position is the position that will be the outcome of the stakeholder consultation. What we are looking for is an efficient regulator, whether the technical and the financial are put together to ensure that we are more efficient and more effective, or whether we continue to decouple them.
“The consultations are ongoing. My position is the position of the outcome of the consultations, ultimately culminating into an efficient regulator for the benefit of the Ghanaian people.”
He also urged agencies and departments under the Energy Ministry to improve the quality of services they provide to their clients and customers.
“I am excited that we have been able to celebrate this Client Focus Week, and marked it, and I understand that we are the only ministry that is doing so. It speaks to how seriously we take our clients, where our theme is to ensure that we are going beyond and above ourselves.
“And I hope that it will be an opportunity for all our agencies and the ministry as well to reflect on how we can improve on the services that we provide to our customers.”
