The Volta River Authority (VRA) staff have raised the alarm over a proposed draft bill seeking to merge the VRA with the Bui Power Authority, along with several other restructuring initiatives within Ghana’s energy sector.
The merger, if implemented, will also see the Electricity Company of Ghana (ECG) combined with the Northern Electricity Distribution Company (NEDCo) and the establishment of an independent Thermal Power Authority.
The VRA staff strongly oppose these moves, asserting that they are part of a covert plan to sell off valuable national assets to private entities under the guise of restructuring.
According to Theophilus Tetteh Ahia, Chairman of the VRA Senior Staff Association, the merger would ultimately dismantle the VRA’s thermal power plants and put them up for sale, which he views as detrimental to Ghana’s national interest.
The staff believe that both the VRA and Bui Power Authority are functioning efficiently and that the proposed merger will destabilize these institutions, weaken their contributions to the national grid, and jeopardize Ghana’s energy security. They argue that the motivation behind the bill is to benefit cronies of the government rather than to improve efficiency.
The merger also threatens the long-standing partnership between the VRA and NEDCo, which ensures stable power supply to northern Ghana. VRA staff claim that the separation of NEDCo from VRA, without a renewal of their existing Memorandum of Understanding (MOU), could lead to irregular power supply and financial losses. Moreover, VRA has faced issues with ECG’s payment obligations, and further fragmentation could exacerbate these challenges.
The bills being pushed by the Energy Ministry to restructure the energy sector institutions include the Ghana Thermal Authority Bill, Ghana Hydro Authority Bill, Ghana Power Distribution Authority Bill, Ghana Nuclear Power Corporation Bill, and Ghana Energy Regulatory Authority Bill.
The move comes after botched attempts by the present government to privatise ECG.
From a conflict resolution perspective, if this issue is not handled through effective and inclusive stakeholder consultations, it could escalate into a national conflict with far-reaching implications, as the staff have vowed to resist the bill through all means including legal avenues and petitions to the President of Ghana as well as the Trade Union Congress (TUC), which they claim was not consulted on the matter.
Their fierce opposition could ignite industrial action, leading to power supply disruptions, increased operational costs, and further instability in the energy sector.
If the ongoing friction between VRA staff and government policymakers, is not resolved promptly, it could also have a rippling effect on consumers. Interruptions in power supply would severely impact industries, businesses, and households, causing economic losses and public frustration. Ghana’s energy security and affordability would be at risk, driving up electricity prices and creating an environment of uncertainty for both local and international investors.
To prevent the situation from degenerating, there is an urgent need for deliberate, transparent, and professional stakeholder consultations that involve not only the government and the management of VRA, Bui Power, ECG, and NEDCo but also labor unions, energy experts, and civil society. A thorough assessment of the financial health, operational efficiency, and strategic roles of these entities must be conducted. Stakeholders must engage in data-driven analysis to ensure that any proposed reforms genuinely serve the national interest.
Furthermore, alternative solutions to improve efficiency within the sector without compromising national assets should be explored. A balanced approach that seeks to modernize the energy sector while preserving Ghana’s strategic power assets could be a path forward. Transparent communication and trust-building between the government and staff are crucial to avoid public outcry, labor unrest, and disruptions in power supply.
It is evident that the proposed merger and restructuring of key energy institutions in Ghana represent a potential conflict that could spiral into national unrest if not carefully managed. Proactive stakeholder engagement, transparency, and a professional evaluation of the state of affected institutions are critical to resolving this issue amicably and safeguarding Ghana’s energy future.
