- Ghana Gass supplies gas to the Volta River Authority (VRA).
- The VRA uses the gas supplied to power its thermal plant.
- However, the VRA has failed to pay the Ghana Gas for all its supply to them.
The body that generates electricity in Ghana, the Volta River Authority (VRA) owes Ghana Gas $735 million.
According to the Head of Finance at Ghana Gas, Emmanuel Essel, the debt was incurred as a result of VRA’s inability to pay for gas supplied to power its thermal plants.
He added that VRA’s inability to pay the debt is affecting the financial status of the Ghana Gas company.
Due to the huge debt, some industry players have suggested that Ghana Gas stop supplying the VRA.
However, Mr Essel says they will not stop supplying VRA with gas despite the suggestion.
In his view, taking such a step may plunge the country into a power crisis, which will cause a serious challenge to homes and industry.
“We don’t think we will cut supply to VRA,” he said, explaining that the government has shown commitment in reducing the debt from over 900 million dollars to 735 million dollars.
He added that the VRA was required to make a monthly payment of over $3 million but it stopped in October 2018.