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General News of Thursday, 16 May 2024

    

Source: www.ghanaweb.live

VRA Senior Staff raise concerns over Cash Waterfall Mechanism, claim it benefits IPPs

Volta River Authority (VRA) Volta River Authority (VRA)

The Senior Staff Association (SSA) of the Volta River Authority (VRA) has expressed dissatisfaction with the repercussions of the revised Cash Waterfall Mechanism on the company's operations.

Implemented in April 2020 and subsequently revised in 2023 as part of the Energy Sector Recovery Programme (ESRP), the Cash Waterfall Mechanism aimed to ensure fairness and transparency in distributing energy revenues among electricity distribution companies.

However, in a statement released in May 16, 2024, the Senior Staff of VRA argue that the practical outcomes do not align with this goal, particularly regarding the treatment of Independent Power Producers (IPPs).

Despite VRA's substantial contribution of 67.5 percent of power to the national grid compared to the IPPs' 32.5 percent, the disbursement of revenue appears skewed in favor of the IPPs.

The association highlighted that while VRA operates all available plants round the clock, the IPPs, in contrast, do not. Yet, the IPPs receive a fixed amount of $43 million monthly, surpassing half of the payments made into the Cash Waterfall Mechanism by the Electricity Company of Ghana (ECG).

The association posed a question: "Will IPPs accept this kind of treatment meted to VRA?"

"We wish to reiterate that VRA is the only strategic state-owned power utility providing and guaranteeing the energy security for the people of Ghana and for that matter none of its assets must be put on sale.

"The Authority is efficient in operating and managing its assets and thus should be allowed to operate its diverse generation mix, devoid of any unwarranted privatisation," the statement indicated.