The Institute for Energy Security says Electricity Consumers are likely to pay more for electricity if the thermal plants of the Volta River Authority is privatized.
Privatisating the thermal plants is part of the bill proposals that seek to merge VRA, Bui Power Authority and combine the ECG and NEDCO into one entity.
Speaking to the media, the Research Lead with the IES, Derrick Xatse, explained that privatisation could open the door for Independent Power Producers, IPP, to capitalize on the situation by adding capacity charges to their power situation.
This, in turn, could lead to a significant increase in consumer electricity tariffs.
“VRA managing its part of power will not add anything capacity charges, Assuming you are giving this to a private company, they will add capacity charges, and when they do, it going to increase the debt government is likely to owe them, and that will be passed on to the ordinary consumer, which would be passed onto the ordinary consumer as increased tariff,”
Are we looking at increasing tariffs, for consumers or businesses to operate with? No. And why would VRA not manage it, not charge capacity to it but we should give it to the IPPs, who are going to add capacity charges, and that is likely to increase the tariff,”
–IES
