The Volta River Authority (VRA) Senior Staff Association has once again pushed back the government’s proposal of a merger between the major power generators and distribution companies.
This follows the government’s proposed bill to merge the Electricity Company of Ghana Limited (ECG), Bui Power Authority, Northern Electricity Distribution Company (NEDCO), and the VRA into two separate entities.
Theophilus Tetteh Ahia, the National Chairman of the Senior Staff Association of VRA argued that government’s proposed plan would not bring any benefits, particularly when it comes to reducing electricity costs for consumers.
Speaking on Point Blank, a segment on Eyewitness News, on Friday, October 4, 2024, Ahia outlined the complexities involved in electricity pricing and challenged the government’s reasoning behind the proposed merger.
“Electricity costing is based on so many factors. From the generation point, we talk about the assets, fuel cost, and inflation on the Cedi and the Dollar. So, there are so many factors that are considered in pricing the electricity.
“That withstanding, the VRA today, is the cheapest in terms of cost per kilowatt Hour in the market space. The IPPs are there, and they contribute about 50% of the energy demand of the country.
“So, when we say we are merging Bui and VRA; notwithstanding, the cost per kilowatt hour at Bui is far higher than that of VRA. So, the agenda to say when I put Bui and VRA together is going to bring the cost down for the consumer is neither here nor there,” he stated.
