The Volta River Authority (VRA) has expressed serious concerns regarding Independent Power Producers (IPPs) seeking to raise their monthly payments under the Cash Waterfall Mechanism (CWM) from $45 million to $59 million. The VRA warns that if the government approves this increase, it could lead to significant financial challenges which not only Concerns the VRA but also GRIDCo and the Bui Power Authority.
In response to these challenges, the Public Utilities Regulatory Commission (PURC) has begun a review of the Cash Waterfall Mechanism to better address payment allocation issues. Jerry Nelson Nettey, National Treasurer of the VRA Senior Staff Association, highlighted the potential negative impact on public power entities if these issues remain unresolved.
Nettey noted that the VRA is currently struggling to maintain financial stability, with one of its few sources of relief being NEDCo, which supplies power from the Brong Ahafo region to the northern areas, aiding in liquidity.
When discussing power exports, Nettey confirmed that the VRA does engage in some export activities, though he mentioned that President Akufo-Addo has requested a reduction in these exports. He also pointed out that while some IPPs have shown interest in exporting power, he questioned their overall priorities.
SOURCE: https://dew360.net
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