You are here: HomeNews2024 05 15Article 1938824

General News of Wednesday, 15 May 2024



VRA staff raise concerns over energy sector payment disparities

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

Members of the Senior Staff Association of the Volta River Authority (VRA) are expressing discontent over what they perceive as inequitable payments allocated to state-owned enterprises within the energy value chain.

In 2023, an agreement was reached between the government and Independent Power Producers (IPPs) for a monthly payment plan of $43 million to mitigate their indebtedness, which posed a significant threat to the stability of the energy sector.

Staff members argue that it is imperative to reassess the agreement, pointing out that IPPs generate less than one-third of the energy contributed by the Volta River Authority to the system.

Speaking to Citi News, Theophilus Tetteh Ahia, Chairman of the Senior Staff Association of VRA, expressed concern that the existing arrangement has posed challenges to their operational capacity.

"If we do not look at the system and digital assistance now, we will end up creating a lot of under-recoveries for these companies, and we will find it difficult to keep the business going," Mr. Tetteh remarked.

He further emphasized that State-Owned Enterprises (SOEs) in the energy value chain, particularly VRA, have been left in a precarious position, receiving insufficient payments that fail to cover losses and operational expenses adequately.

"So, our call is simple, if fixed amounts can be paid to others, why not do the same for the SOEs?" Mr. Tetteh questioned.