ASEC kicks against proposed mergers of VRA, ECG and Bui Power and others

The Africa Sustainable Energy Centre (ASEC) has expressed concerns about a new draft bill currently before Parliament that proposes significant restructuring in Ghana's energy sector.

The draft bill, aims to merge the Volta River Authority (VRA) with the Bui Power Authority (BPA), combine the Electricity Company of Ghana (ECG) with the Northern Electricity Distribution Company (NEDCo), and establish an independent Thermal Power Authority.

The introduction of the bill has prompted staff groups at VRA to strongly oppose the proposed mergers, citing various economic and operational risks that could jeopardize Ghana's energy sector.

In a statement issued on the matter, ASEC stated, “there are high economic risks that would follow such a decision. VRA has played the role of a "social powerhouse", acting as a shield for Ghanaians against sharp electricity price hikes, especially from the possible market power of Independent Power Producers (IPPs). Privatising the only thermal asset of the state would open the door for these IPPs to exploit weaknesses in the system, leading to massive price hikes for consumers.”

ASEC highlighted VRA's track record of performance and revenue generation, including a profit of GH¢156 million in 2020, to argue that the Authority is fully capable of effectively managing its assets.

“There is no need to fix what is not broken. Privatisation is traditionally justified when a public entity consistently underperforms and drains government resources, but that is not the case with the VRA,” the Centre emphasised.

ASEC is therefore urging Parliament to prioritise transparency and stakeholder consultation before proceeding with any restructuring in Ghana's energy sector.

See the full statement below:



MA