The Institute for Energy Security (IES) has called on the government to reconsider a contentious draft bill that seeks significant reforms in the nation’s power sector, citing huge risk factors.
The proposed bill includes plans to merge the Volta River Authority (VRA) with the Bui Power Authority, consolidate the Electricity Company of Ghana (ECG) with the Northern Electricity Distribution Company (NEDCo), and establish a new, independent Thermal Power Authority.
Staff groups from the VRA have expressed strong objections to these restructuring plans, contending that they could adversely affect the power sector and diminish the VRA’s operational efficiency.
In a statement released on Sunday, September 8, 2024, and signed by its Executive Director, Nana Amoasi VII, the IES outlined the potential dangers associated with the proposed changes.
“While the proposed merger and restructuring of Ghana’s power sector may have its proponents, we believe that the risks far outweigh the benefits in its current form,” the statement noted.
It stressed the need to strengthen the current institutions rather than dismantling them.
“The focus should be on stabilising and strengthening the existing institutions such as the VRA, Bui Power Authority, ECG, and NEDCo, rather than dismantling them,” the statement added.
The IES therefore urged the government to reconsider the draft bill and explore alternative solutions that will protect Ghana’s energy security, affordability, and long-term sustainability.