Proposed merger in the energy sector would be unfavourable - VRA Union

Fuseini Adjei, the National Union Chairman of the Public Services Workers Union of the Volta River Authority (VRA) has cautioned against the proposed merger of power producers and distributors, saying it would be unfavourable for the nation’s energy sector.

The government is proposing a bill to merge power producers and distributors; however, the proposed bill has since generated a public outcry among energy sector workers in the country.

The proposed bill is seeking for the merger of the Bui Power Authority (BPA), the NEDCo and the Electricity Company of Ghana (ECG).

However, in an interview with the Ghana News Agency (GNA) in Sunyani, Mr Adjei said any attempt to merge the power producers, and the distributors would not be in the interest of the nation’s energy sector in tackling the nation’s power crisis.

Earlier, the staff of the NEDCo undertook a peaceful demonstration to register their displeasure about the proposed bill.

Rather, it was imperative for the government to extensively engage stakeholders in the power sector in finding solutions to challenges in the energy sector.

He said any move to privatise the nation’s power sector too would lead to increased power costs, saying “private entities always prioritise profit over public service”.

Mr Adjei pointed out that currently the VRA was selling power at a reasonable price due to the Authority’s social contract and cautioned against measures that could “harm” the sector and thereby benefit private entities.

He also called on the government to engage stakeholders in the drafting of the proposed bill to capture their expertise too.

In a related interview, Mr Prince Mash-hud Abdulai, the Vice President of the NEDCo Senior Staff Association noted that, “At this stage of our operations, a merger is not the solution.”

Rather, he called on the government to provide the necessary resources and financial support to energy sector players which he added remained crucial for them to effectively and efficiently serve the people.

Mr Abdulai said if proper care were not taken the power sector could fall into the “hands of the private sector” and that would allow private companies to “dictate prices and use of power which may not be in the best interest of the people.

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