1 day ago
7 ARTICLE AD
The National Chairman of the Volta River Authority (VRA) Senior Staff Association, Mr Theophilus Tetteh Ahia, has urged the government to urgently address the low electricity revenue payment by ECG under the revised Cash Waterfall Mechanism (CWM).
He warned that any further delays in ensuring adequate payments to all sector players could lead to a supply crisis, not due to generation shortfalls but because power generators might shut down operations in protest over non-payment of energy sale revenue.
Mr Ahia made the call at the weekend during the 2025 Biennial National Delegates Congress organised in Koforidua by the Senior Staff Association (SSA) of the VRA.
Held on the theme: ‘The Impact of Receivables on the Operations of the VRA/NEDCo: Ghana’s Energy Security,’ the congress gathered senior staff members, NEDCo officials, and stakeholders from ECG and the broader energy sector.
The participants discussed sustaining and improving VRA’s performance, reviewed past activities, and elected new executives.
Recounting the implementation of the CWM in 2021, Mr Ahia noted that it was designed as a single-sourced payment system managed by the Public Utilities Regulatory Authority (PURC).
The system ensured equitable distribution of electricity sales revenue from ECG to sector players, including State-Owned Generators (SOG) and Independent Power Producers (IPPs).
He explained that the system had initially addressed non-payment issues by ensuring prompt compensation to critical stakeholders like the VRA, thus maintaining financial stability and a reliable electricity supply.
However, in 2023, he indicated that the government revised the payment structure under the CWM, prioritising a USD 55 million payment to IPPs against potential forex losses, while SOEs received payments in Ghana Cedis from the remaining funds.
Mr Ahia revealed that ECG had not consistently made full energy sales revenue payments since the implementation of the revised CWM, revealing that instead, ECG had unilaterally determined payment amounts without consulting major industry stakeholders, leading to a significant receivable deficit for VRA.
He expressed concerns that ECG’s failure to adhere to CWM payment protocols had created financial instability for key electricity suppliers like VRA, Bui Power, GRIDCo, and IPPs.
The revised mechanism, he argued, had unfairly prioritised payments to IPPs in USD while leaving SOEs struggling with financial challenges.
Additionally, he warned that if ECG continued to make payments at its discretion rather than per the mechanism’s requirements, the country’s power generation outlook could be jeopardised, with severe economic and security implications.
Mr Ahia called on the government to intervene immediately to rectify the situation and prevent disruptions that could negatively affect Ghanaian businesses and national security.
The Acting Chief Executive Officer (CEO) of the Volta River Authority, Mr Edward Obeng Kenzo, urged VRA workers to enhance efficiency and productivity in order to ensure reliable and affordable energy supply.
He emphasised that a stable electricity supply was crucial for economic growth, impacting industries, businesses, medical facilities, telecom services, security, and education.
Speaking on the theme, Mr Kenzo highlighted that reliable electricity production was essential for ensuring prompt payment from customers.
He noted that perceived high costs and supply inconsistencies could discourage customers from paying their bills.
Mr Kenzo stressed the importance of the VRA’s role in national development and called on workers to remain committed to delivering reliable and affordable electricity to Ghana and beyond.
FROM AMA TEKYIWAA AMPADU AGYEMAN, KOFORIDUA
