Ministry of Energy requests suspension of ECG-NEDCo merger bill

• Herbert Krapa, Minister of State at the Ministry of Energy, has written to parliament to suspend consideration of the Ghana Energy Regulatory Authority bill
• The bill seeks to merge the Electricity Company of Ghana (ECG) and the Northern Electricity Distributions Company (NEDCo)
• According to Herbert Krapa, the suspension of the project should allow for more consultations following protests against the project

The Ministry of Energy has requested that Parliament suspend the passage of the Ghana Energy Regulatory Authority Act, which has been the subject of much controversy.

The bill seeks to merge the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCo).

The merger would create an independent Thermal Power Authority, consolidating the thermal plants of the Volta River Authority (VRA).

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However, the bill has faced harsh criticism from VRA workers and other civil society organizations who have accused the government of clandestinely trying to privatize the energy sector.

They also noted that the bill, when approved, would significantly harm the country’s energy sector

They called on parliament to thwart the government’s efforts to merge the companies.

In response, Herbert Krapa, Minister of State at the Ministry of Energy, urged parliament to halt approval of the bill to allow for further consultation.

The Ministry of Energy is currently promoting five other related bills in parliament.

These are the Ghana Power Distribution Authority Bill, the Ghana Energy Regulatory Authority Bill, the Ghana Thermal Authority Bill, the Ghana Hydroelectric Authority Bill and the Ghana Nuclear Energy Corporation Act.

VRA workers protest merger

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The Volta River Authority Senior Staff Association (VRA) and the Public Service Workers Union (PSWU) of the Trades Union Congress (TUC) organized a protest at the VRA headquarters in Accra.

The protest on Wednesday, September 18, 2024, opposed the government’s proposal to merge the VRA and the Bui Power Authority.

The group believes that such a merger would significantly harm the operation of VRA and threaten its long-term viability.

Theophilus Tetteh Ahia, president of the VRA Senior Staff Association, explained that there are unresolved concerns about the merger and its impact on the company’s operations.

He said that although the VRA-SSA will continue to insist on its demands for the withdrawal of the bill, they will take all legal measures to ensure that the two energy companies are not merged.

However, he said the VRA will pray for divine intervention.

VRA opposes IPP’s request for higher payments

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YEN.com.gh reported that the Volta River Authority has opposed calls by Independent Power Producers for an upward adjustment of their monthly payments.

VRA said that if the PURC agrees to increase monthly IPP payments from $45 million to $59 million, the three state power entities would face dire financial consequences.

The VRA explained that this is because ECG is already heavily in debt and new demands would collapse it.

Source: YEN.com.gh