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29.06.2005 General News

Merger of ECG and NED is to ensure efficiency

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Accra, June 29, GNA - Professor Mike Oquaye, Minister of Energy on Wednesday said government intends to merge the Electricity Company of Ghana (ECG) and the Northern Electricity Department (NED) of the Volta River Authority (VRA) as part of the reform of the power sector as well as consolidating and taking advantage of the synergies in their operations.

He said currently the Ministry of Energy, VRA/NED and ECG are working out the optimum modalities for ensuring that the merger is achieve in an efficient manner.

Prof. Oquaye said this in an answer to a question by Mr Joseph Yaani Labik, Ind-Bunkpurugu-Yuuyoo, as to the rationale behind the merger of ECG and NED of the VRA.

The Minister said other benefits to be derived from the merger include the harmonisation of the standards of performers to ensure that all consumers benefit from the same standard of service. Also a single management would reduce the overall administrative and other overhead cost for power distribution in the country given the relatively small size of the power market in Ghana as well as single entity which would facilitate the concentration of specialisation of operations in the same environment to ensure the best output, Prof. Quaye said.

He said originally the then ECG had responsibility for the operation of the distribution system throughout Ghana but in 1987 as part of the arrangements to extend the national grid to the Northern parts of Ghana the NED was created to manage the distribution system to these areas.

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