The Institute for Energy Security (IES) has called on the government to urgently address the mounting debt issues between the Volta River Authority (VRA), the Electricity Company of Ghana (ECG), and the Volta Aluminium Company (VALCO) before proceeding with any structural changes in the power sector.

The call from IES follows a proposed draft bill that seeks to merge the VRA with the Bui Power Authority, combine the ECG with the Northern Electricity Distribution Company (NEDCo), and create an independent Thermal Power Authority from VRA’s thermal plants.

In a statement signed and issued on Sunday, Nana Amoasi VII, Executive Director of IES, warned that the failure of these entities to meet their financial obligations has plunged the VRA into a severe liquidity crisis.

He stated that this issue must be resolved before any mergers or structural adjustments are implemented.

“The government must urgently resolve the outstanding debt issues between VRA, ECG, and VALCO,” the IES urged.

“The failure of these entities to meet their payment obligations has created a severe liquidity crisis for VRA, and this must be corrected before any structural changes are made.”

At the same time, staff groups within the VRA have voiced strong opposition to the proposed draft bill, arguing that the planned mergers could have dire consequences for both the VRA and the nation as a whole.

They contend that these changes are not in the best interest of Ghanaians and could compromise the VRA’s critical contributions to the national grid and energy security.