GRIDCo disconnects power supply to VALCO over failure to settle $30million debt
The Ghana Grid Company Limited (GRIDCo) has disconnected Volta Aluminium Company Limited (VALCO) from the power grid over a $30 million debt.
Valco as of Monday is without power because of the debt.
GRIDCo management in a release explained that several attempts were made to VALCO but the company failed to honour its obligations.
“The decision was made by the Management of GRIDCo after several attempts to get VALCO to honour its payment obligations failed. The disconnection is part of ongoing debt collection measures to mobilise the needed funds to support its operations, ” portions of the statement read.
It also noted that its operations have been “significantly impaired due to huge unpaid debts owed by its bulk customers, currently amounting to over GH¢1.2billion.”
At its recent Annual General Meeting (AGM) in November 2019, the company announced that its network expansion efforts have been hampered due to the current financial situation.
The Chief Executive of GRIDCo, Jonathan Amoako-Baah, said: “We play a critical role in Ghana’s power sector and we need every resource available to us to continue delivering on our mandate to our key stakeholders and clients.”
“VALCO’s debts continue to mount and will create major problems for our operations if nothing is done about it. We have been engaging the management of VALCO since the first half of this year to agree on a payment plan but nothing has come out of it.
“We have been left with no option as our continued state of affairs is unsustainable. We take the opportunity to entreat other customers indebted to GRIDCo to take steps to settle their debts,” he explained.
UPDATE: But barely three hours after the management of GRIDCo had issued the statement of disconnection, Public Relations Officer of the Energy Ministry, Nana Damoah stated categorically that power has been restored back to VALCO.
Mr. Damoah in an interview with Joynews said the management of GRIDCo is currently in talks with VALCO to come up with a payment plan that will enable both parties to get what is due them.
He argues that GRIDCo’s drastic move is to send a strong warning to other state agencies who have accrued huge debts over the years.
Again, he has cautioned customers of ECG and NEDCO to be on the alert.
“The state agencies that are dealing with power supply in this country are very serious and will come after anybody who owes them to ensure they are able to bring our power sector to that level of comfort, ” he said in an interview monitored by TheGhanaReport.com
He also mentioned that the energy sector recovery plan will soon ensure that a lot of measures are taken to restore financial stability and sustainability in the energy sector.