The Africa Sustainable Power Centre (ASEC) has expressed robust opposition to the proposed merger of the Volta River Authority (VRA) and Bui Energy Authority (BPA), in addition to the institution of an impartial Thermal Energy Authority.
ASEC argues that the merger poses important financial dangers, together with publicity to sharp electrical energy value hikes as a result of privatization, compromised skill to ensure dependable vitality provide, stifling of innovation and competitors within the hydropower sector, amplification of drought and water administration dangers, delayed progress within the nationwide renewable vitality drive and erosion of economic stability and years of progress within the vitality sector.
In a press launch, ASEC argued that the merger would dismantle VRA’s fastidiously balanced vitality portfolio, together with photo voltaic, thermal, and hydropower, and will result in Ghana’s vitality safety collapse.
The suppose tank additionally expressed considerations in regards to the authorities’s plan to separate VRA’s thermal property into an impartial thermal energy authority, which may result in privatization and expose customers to huge value hikes.
ASEC famous that VRA has a monitor report of profitability, making a merger pointless.
Additionally they warned that privatization may result in a disaster, citing examples from California and Brazil.
Moreover, ASEC rejected the proposal to merge the Northern Electrical energy Distribution Firm (NEDCo) with the Electrical energy Firm of Ghana (ECG), stating that it will divert consideration from addressing core points and make it troublesome for the brand new distribution firm to revenue.
As a substitute, ASEC really helpful privatizing a part of ECG’s operations to handle the present electrical energy sector challenges, promote fiscal self-discipline, and generate income.
The suppose tank referred to as for transparency and session within the decision-making course of, emphasizing the significance of preserving the independence of VRA and BPA to make sure continued progress within the vitality sector.
ASEC believes that VRA should stay unified to make sure dependable and inexpensive electrical energy for all Ghanaians.
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