The Ghana Gas Senior Staff Association (GGSA) has made a strong case for the quick settlement of debts owed to Ghana Gas by the Electricity Company of Ghana (ECG) amid mounting worries within Ghana's energy sector. It was stressed by the staff association that if this financial neglect is not addressed, it may lead to a return of sporadic power outages, or "dumsor."
Related To This: GRIDCo Warns of Potential Christmas 'Dumsor' Due to ECG Debts
The staff association brought attention to the concerning trend of ECG's failure to pay its debts to a number of State-Owned Enterprises (SOEs), most notably the Ghana National Gas Company (Ghana Gas), and emphasized the dangerous consequences of this financial turmoil.
The association expressed its concerns in a letter to the ECG that was also copied to the Minister of Energy, the Board Chairman, and the CEO of Ghana Gas. The letter focused on the possible threat to the stability and operational vitality of Ghana Gas, a crucial organization in the country's energy sector.
The staff organization also emphasized concerns regarding ECG's departure from IMF conditionality, which emphasizes regular payments to state-owned firms in the energy sector. The group claims that the departure from these recommendations jeopardizes not only Ghana's attempts to follow international best practices, but also the country's economic reputation and stability. They also expressed concern about how the current financial difficulties would affect investor confidence in the energy sector.
The staff association vividly depicted the tribulations faced by Ghana Gas as a consequence of this financial neglect, highlighting the company's struggle to meet financial commitments to Tullow Oil, a key provider of raw gas. Such challenges, they stressed, hamper not only day-to-day operations but also jeopardize crucial financial obligations, placing both Ghana Gas' infrastructure and overall operational efficiency at risk.
In a bid to avert potential power disruptions and to ensure the sustained flow of gas supply, the staff association called for the immediate reinstatement of the Cash Water Fall Mechanism, a payment system designed to ensure that all players in the value chain receive their dues. They warned that failure to reinstate this mechanism and resolve outstanding financial dues could precipitate unwelcome power supply challenges.
Comments
Post a Comment