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GRIDCo disconnects power supply to VALCO over $30m debt

The Ghana Grid Company Limited (GRIDCo) has disconnected power supply to the Volta Aluminum Company Limited (VALCO), following failure of the company to settle over $30million outstanding debt to the power transmitter.

In a press statement Monday, GRIDCo explained that the decision was made by the Management of GRIDCo after several attempts to get VALCO to honour its payment obligations failed.

It added, “The disconnection is part of ongoing debt collection measures to mobilise the needed funds to support its operations.”

GRIDCo’s 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.”

GRIDCo staff protest over ‘huge debts’

On December 3, 2019, GRIDCo staff hit the streets of Accra to protest huge debts owed the company by power transmitters. The agitated staff of GRIDCo massed up at the Black Star Square to begin the protest march to the Finance Ministry and the Electricity Company of Ghana.

GRIDCO leadership has been pushing for millions of debts owed it by ECG, the Northern Electricity Distribution Company (NEDCo) and the Volta Aluminum Company (VALCo) to be settled.

GRIDCo is a leading power transmission company in West Africa. It operates the Ghana Wholesale Electricity Market and provides electricity transmission services in Ghana and West Africa.

Source: JoyBusiness

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