VRA Senior Staff Stage Protest Against Merger Of VRA And Bui Power Authority
- The Senior Staff Association of the Volta River Authority has staged a protest at the VRA headquarters in Accra
- They are protesting the government's proposal to merge the VRA and the Bui Power Authority
- The group says the merger would significantly undermine the VRA’s operation and threaten its viability in the long run
The Volta River Authority’s (VRA) Senior Staff Association and the Public Services Workers Union (PSWU) of the Trades Union Congress (TUC) have staged 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.
Source: UGC
The group believes such a merger would significantly undermine the VRA’s operation and threaten its viability in the long run.
Government’s proposal before parliament
The government has presented a draft bill to parliament seeking to merge the VRA and the Bui Power Authority.
The draft bill also seeks to consolidate the Electricity Company of Ghana (ECG) with the Northern Electricity Distribution Company (NEDCo).
Meanwhile, an independent Thermal Power Authority would be created from the VRA’s thermal plants.
However, the VRA said the bill should be withdrawn immediately from parliament.
Theophilus Tetteh Ahia, Chairman 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 while the VRA-SSA continues to press home their demands for the bill’s withdrawal, they will take all legal steps to ensure the two power companies are not merged.
In the meantime, he said the VRA will pray for divine intervention.
ASEC argues against merger
The Africa Sustainability Energy Centre (ASEC) has kicked against the merger.
In an interview with YEN.com.gh, Dr Elvis Twumasi, ASEC’s Director of Research and Innovation, warned that such a decision could pose high economic risks for the country.
He stated that should the merger happen and the VRA’s thermal plants privatised, it could lead to massive price hikes for consumers as other independent power producers would exploit weaknesses in the energy sector to raise their prices.
“With a strong track record of profitability, such as its impressive GHS 156 million profit in 2020, the VRA has proven it is fully capable of managing its assets effectively. There is no need to fix what is not broken,” he added.
He also warned that merging ECG and NEDCo was going to be a big mistake.
“To merge two entities making significant losses as one is uncalled for. This move will divert attention from addressing the core issues and make it difficult for the new distribution company to turn a profit,” he explained.
Asantehene urges privatisation of SOEs
YEN.com.gh reported that the Asantehene Otumfuo Osei Tutu II has urged the government to diversify the ownership structure of certain state companies to drive investment and growth in their respective sectors.
The Ashanti overlord referred to the Volta River Authority (VRA), the Ghana Grid Company (GRIDCo), and the Electricity Company of Ghana.
According to Asantehene, involving the private sector in the ownership structure of these companies would secure essential financial investments into the companies and ease the burden on the public coffers.
Proofread by Berlinda Entsie, journalist and copy editor at YEN.com.gh
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Source: YEN.com.gh
