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Energy Ministry calls for suspension of ECG-NEDCo merger bill

  • Herbert Krapa, Minister of State in 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 Corporation of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCo).
  • According to Herbert Krapa, the suspension of the bill is supposed to allow more consultations following protests against the bill.

The Ministry of Energy has called on Parliament to suspend the passage of the much-controversial Ghana Energy Regulatory Authority Bill.

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

Energy Ministry urged Parliament to suspend ECG-NEDCo merger bill
The Energy Ministry says suspending the bill would allow more consultations.
Source: Facebook

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

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

They also noted that the bill, once passed, would significantly harm the country’s energy sector.

They called on Parliament to thwart government efforts to merge the companies.

In response, Herbert Krapa, Minister of State at the Ministry of Energy, urged Parliament to suspend the adoption of the bill to allow more consultations.

The Ministry of Energy is currently introducing five other related bills to 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 Power Corporation Bill.

VRA workers demonstrate against merger

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The Volta River Authority Senior Staff Association (VRA) and the Public Service Workers Union (PSWU) of the Trade Union Congress (TUC) 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 Bui Power Authority.

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

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

He said that while the VRA-SSA continues to press its demands for the withdrawal of the bill, it will take all legal measures to ensure that the two power companies do not merge.

In the meantime, he said the VRA would pray for divine intervention.

VRA opposes IPP’s demand for higher payments

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YEN.com.gh reported that the Volta River Authority has opposed calls from independent power producers for an upward adjustment of their monthly payments.

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

The VRA explained that this is because the ECG is already heavily in debt and further demands could collapse it.

Source: YEN.com.gh