The Senior Staff Association of the Volta River Authority (VRA) has kicked against the government’s proposed privatisation of the Northern Electricity Distribution Company (NEDCo), warning that the planned Private Sector Participation (PSP) arrangement could further derail utility operations in the country.
According to the Association, the proposed model trumpeted by the government would inevitably place the country at a huge disadvantage as it would hand over electricity distribution, billing, revenue collection, network maintenance and customer service to private operators, contradicting assurances offered.
In a petition addressed to the Minister of Energy and Green Transition by the VRA/NEDCo Staff Groups sighted by The Ghanaian Times, the Association described the PSP as a “disguised privatisation” that would transfer the utility’s core functions to private operators.
They argued in the petition that the proposal was also at variance with President John Dramani Mahama’s position that government had no intention of privatising state-owned electricity distribution companies.
NEDCo, a subsidiary of the VRA, served about 64 per cent of Ghana’s landmass, covering the five northern regions, parts of the Bono, Bono East, Oti and Volta regions, as well as some communities in Burkina Faso and Togo.
According to the staff group, the company operated under difficult conditions, including non-cost-reflective tariffs, extensive rural networks and a high proportion of lifeline consumers.
They noted that about 39 per cent of NEDCo’s customers were lifeline users who contributed relatively little revenue while requiring full service delivery and network maintenance.
The petition also cited ageing infrastructure, foreign exchange pressures and persistent revenue shortfalls as key challenges confronting the utility.
The Association called for the immediate suspension of the PSP process and the commencement of broad stakeholder consultations involving government, management and organised labour.
The workers also advocated tariff rationalisation, increased public investment in electricity infrastructure and a clear policy framework to preserve electricity distribution as a strategic public service.
While expressing their readiness to engage government on reforms in the sector, they stressed that any intervention must protect jobs, ensure equitable access to electricity and safeguard public ownership of the distribution network.
BY TIMES REPORTER
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