Prime News Ghana

Government intervenes as GRIDCo restores power to VALCO

By Mutala Yakubu
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The government has moved in swiftly to restore power to the Volta Aluminum Company Limited (VALCO).

Earlier today, the Ghana Grid Company Limited (GRIDCo) disconnected VALCO from the power grid today over a $30million debt.

GRIDCo in a statement said they did so “after several attempts to get VALCO to honour its payment obligations failed.”

READ ALSO: GRIDCo disconnects power to VALCO over $30million debt

But Head of Communication and Public Affairs at the Ministry of Energy Nana Oppong Damoah has confirmed that power has been restored currently to VALCO and they are discussing ways to solve this issue amicably.

"The Minister for Energy, Peter Amewu has intervened to ensure that some level of parity is brought to the issue. GRIDCo are rightfully due the amount they are asking for but VALCO has its own challenges which we are aware. We have done a slight intervention to ensure that discussions between the two will be brought to finality. As at now GRIDCo has agreed and restored power to VALCO, this situation is delicate and we want to reconcile these two agencies, he told Joy FM.

Mr. Damoah also warned other state institutions that are indebted to the Ghana Grid Company Limited (GRIDCo) and other power distributing companies to pay their debt or expect disconnections to the national grid in 2020.

“Those who are customers of ECG and NEDCO should also be on the alert that the state agencies that are dealing in power supply in the country are very serious and they are going to come after everybody that owes them,” he stressed.

GRIDCo has on several occasions drum home their frustration due to the debts owed them by their customers.

GRIDCo undertakes economic dispatch and transmission of electricity from wholesale suppliers (generating companies) to bulk customers, which include the Electricity Company of Ghana (ECG), Northern Electricity Distribution Company (NEDCo) and the Mines.

READ ALSO: Withdrawal of emergency services : Gov't must immediately address concerns of GRIDCo staff - Minority 

The union says ECG and NEDCo owe about GHS607 million and GHS177 million respectively, while VALCO and PDS owe over US$32 million and GHS94 million respectively.