VRA opposes IPP’s demand for increased monthly payments: “It will collapse public power entities”

• The Volta River Authority has opposed calls by the Independent Power Producer to adjust their monthly payments upwards
• The VRA said that if PURC agrees to increase IPP’s monthly payments from $45 million to $59 million, the three state power entities will face dire financial consequences
• The VRA explained that this is because the ECG is already heavily indebted and further demands would bring it down

The Volta River Authority (VRA) has said that requiring Independent Power Producers (IPPs) to increase their monthly payments under the Cash Flow Mechanism (CWM) would have serious financial consequences for all three government entities.

The Independent Power Producers are seeking $59 million of an initial $45 million, which VRA believes would have a negative impact on VRA, Bui Power Authority and GRIDCo.

The VRA statement it follows the launch of the Public Utilities Regulatory Commission’s (PURC) review of the Cash Waterfall Mechanism to address challenges with payment allocations.

Jerry Nelson Nettey, National Treasurer of the VRA Senior Staff Association, told JoyNews that the concern is about the possible mismanagement of the Cash Waterfall Mechanism within the sector.

He stated that if the IPPs continue to demand $59 million, the Electricity Company of Ghana (ECG) will not be able to pay.

He noted that ECG does not make this amount in a month and therefore implementing their demands will increase the company’s debt.

He added that VRA is also struggling to make ends meet due to EKG debt and all it is managing maintain its function due to revenue from NEDCo; Thus, more financial demands from the two power distributors could cripple the authority.

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On electricity export as a source of revenue, he said revenue from this region has also declined following Akufo-Addo’s request to reduce the amount of power exported to neighboring countries.

Akufo-Addo cuts off electricity in neighboring countries

President Akufo-Addo has ordered a temporary halt to the export of electricity to neighboring countries to help alleviate the country’s electricity crisis.

This was revealed by the chairman of the House Committee on Energy, Samuel Atta Akyea, in an interview with JoyNews.

This would mean that electricity exported to neighboring countries, including Togo, Benin and Burkina Faso, would be redirected and fed into the national grid.

According to Atta Akyea, the directive demonstrates the commitment of the President to address the country’s erratic power supply problem.

The head of ECG resigns

YEN.com.gh reported that Samuel Dubik Mahama has resigned as Chief Executive Officer of the Electricity Company of Ghana.

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ECG and GRIDCo explain reasons for recent blackouts amid fears of dumsor return

Mahama did not give an official reason for his resignation in a letter to the company’s board.

He was appointed by President Nana Akufo-Addo and assumed the role on 16 May 2022.

Source: YEN.com.gh