Story By : Mabel Adorkor Annang
The Africa Sustainable Energy Centre (ASEC), has strongly opposed a proposed bill seeking to merge key energy producers in Ghana, including the Volta River Authority (VRA) and Bui Power Authority (BPA), as well as the Electricity Company of Ghana (ECG) and Northern Electricity Distribution Company (NEDCo). Additionally, the bill suggests establishing an independent Thermal Power Authority.
In a statement released on Tuesday, ASEC highlighted several economic risks associated with these mergers, including the potential for increased electricity prices, reduced reliability of power supply, and stifled innovation. The centre argued that VRA, with its strong financial performance and proven track record, is well-equipped to manage its assets effectively and should not be restructured.
“Privatising the only thermal asset of the state would open the door for Independent Power Producers (IPPs) to exploit weaknesses in the system, leading to massive price hikes for consumers,” ASEC warned.
The center also expressed concerns about the potential impact of the mergers on Ghana’s renewable energy targets. “Consolidating the hydropower assets of VRA and BPA would stifle innovation and competition,” ASEC stated. “BPA and VRA have contributed significantly to achieving the 10% renewable integration by 2030.”
ASEC called for greater transparency and consultation in the decision-making process, emphasising the importance of preserving the independence of VRA and BPA to ensure continued progress in the energy sector.