Energy Ministry Urges Parliament to Suspend Review of ECG-NEDCo Merger Bill

In a new twist, the Ministry of Energy has written to Parliament for the controversial Ghana Energy Regulatory Authority Bill that seeks to merge the Electricity Company of Ghana and Northern Electricity Distribution Company to be shelved. The bills also aim to create from the thermal assets of the VRA, an independent Thermal Power Authority.

It called on the Energy Ministry to appeal the case. A statement signed by Herbert Krapah, Minister of State at the Energy Ministry, emphasized that some consultations must be made before such a bill was passed. "The Ministry respectfully requests Parliament to suspend consideration of the aforementioned Bill to enable us to hold further consultative talks."

The bill forms part of the general legislative effort which covers a number of proposals such as the Ghana Thermal Authority Bill, Ghana Hydro Authority Bill, and the Ghana Power Distribution Authority Bill, all under the umbrella of the Ghana Energy Regulatory Authority Bill. These have been resisted vigorously, especially by stakeholders within VRA.

The senior staff of the VRA have strongly opposed the merger between ECG and NEDCo, on account of which operational stability and effectiveness of the Authority are being Vitianded. According to them, such a merger would affect the VRA's resource management capability and affect consistency in energy provision. In registering their displeasure, staff of VRA have demonstrated a warning that such a merger portends dire implications for the country's energy sector.

With discussions going cold in Parliament, the intervention by the Energy Ministry might provide the window for wider stakeholder involvement that could change the future for the energy sector in Ghana.