General News of Wednesday, 8 November 2000

Source: GNA

ECG owes VRA 260 billion cedis

The Electricity Company of Ghana (ECG) owes the Volta River Authority (VRA) about 260 billion cedis for power supplied over the years.

Mr Benjamin Osei Afeng, VRA's director of generation, said this when he explained the relationship between the two companies to award winning farmers and fishermen on tour of the nation's major power generation station at Akosombo.

One of the 61 farmers billed to be honoured at this year's Farmers' Day Celebration, at Wa, wanted to know about the nature of relationship between the two organisations and why VRA does not supply power directly to consumers to reduce cost of electricity.

Mr Afeng said before the construction of the dam, which now provides 850 of the 1,200 megawatts power demand of the country, ECG was already distributing power from generators.

"When the dam was built, it was decided that ECG should remain in business to distribute VRA-generated power. But in the three northern regions and Brong Ahafo, VRA distributes power directly to consumers".

Supplementary hydropower to Akosombo is generated from Akuse in addition to power from Aboadze and imports from la Cote d'Ivoire.

Mr Afeng said the Akosombo power system is in good condition with the water level of the dam at 262.9 feet. Its peak level is 278 feet and lowest operational level is 242 ft. However, the generation director said the cost of installing hydro dams, with its environmental and social impact has become so expensive that thermal plants, which run on gas are preferable options.

Officials of VRA told the GNA that efforts are being made to get ECG to pay its debts.

They attributed the situation to the high level of indebtedness of consumers to ECG, especially state-owned organisations.

The tour, part of the award package for the farmers, enabled them to see how power is generated from the dam