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Proposed merger in the energy sector not a solution - VRA Union

1st October 2024 11:23:23 AM

2 mins read

By: Amanda Cartey

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Proposed merger in the energy sector not a solution  - VRA Union

National Union Chairman of the Public Services Workers Union at the Volta River Authority (VRA), Fuseini Adjei, has expressed concerns over the proposed merger of power producers and distributors, stating it would not benefit the nation’s energy sector.

The government is planning to introduce a bill to combine power producers and distributors, but this has sparked widespread opposition from workers in the energy sector.

The bill seeks to merge the Bui Power Authority (BPA), NEDCo, and the Electricity Company of Ghana (ECG) into one entity.

However, Mr. Adjei, speaking to the Ghana News Agency in Sunyani, argued that merging the power producers and distributors would not effectively address the country’s power challenges.

Earlier, NEDCo staff staged a peaceful protest to express their dissatisfaction with the proposed bill.

Mr. Adjei emphasized that it is crucial for the government to engage with stakeholders in the power sector thoroughly in order to find proper solutions to the issues in the energy industry.

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 urged the government to involve stakeholders in the bill's drafting process to incorporate their expertise as well.

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.”

Instead, he urged the government to supply the essential resources and financial backing to energy sector participants, emphasizing that this support is vital for them to serve the public effectively and efficiently.

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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