Mr. Speaker, I beg to move, That the Volta River Development (Amendment) Bill be now read a Second time. Mr. Speaker, the object of this Bill is to amend the Volta River Development Act of 1961 (Act 46) in order to continue the implementation of the Power Sector Reforms initiated in the mid-1990s.
The main objectives, among others, are to create conditions that will attract significant private sector investment to the energy supply chain, to remove the monopoly and decentralise the structure for planning the operation of the power sector and improve transparency in the regulation of power utility. Mr. Speaker, it is also to attract the relevant capital by the new regime to make the whole sector more effective.
Mr. Speaker, clause 1 takes the opportunity to revise the composition of the membership of the Authority; clause 2 deals with the tenure and conditions of service of members; clause 3 spells out more clearly the appointment of the Chief Executive and others. Clause 6 seeks to effect the removal of the transmission function of the VRA by the repeal of the relevant provisions and clause 7 enables regulations made under the Act to impose higher penalties. Clause 9 provides for transitional provision to avoid the vacuum in the interim. Mr. Speaker, I beg to move accordingly.
Question proposed.
chairman of the committee (Mrs. Gifty E. Kusi): Mr. Speaker, I rise to support the motion and in doing so I wish to present the Report of the Committee. Mr. Speaker, I crave your indulgence to present the introduction and the observations and I want the Hansard to capture the whole Report as being read.
1.0 Introduction
The Volta River Development (Amendment) Bill was laid before the House by the Minister for Energy, hon. Mike Oquaye on 21st June 2005 and was subsequently referred to the Committee for consideration and report in accordance with article 103 (3) of the 1992 Republican Constitution and Standing Order 188 of the House.
2.0 Background Information
The main object of the amendment to the Volta River Development Amendment Act 1961 (Act 46) is to accelerate the power sector reforms which started about a decade ago.
The reforms were motivated by the realization that there were significant obstacles hindering the efficient and effective operations and development of the energy sector.
Among these obstacles was the inability of the power sector to attract massive capital investment to improve upon the reliability of power supply. The sector could not also raise its own capital due to unrealistic tariffs resulting from government subsidy and interventions.
The reforms therefore seek, among other things, to create conditions that would attract significant private sector investments in the energy supply chain.
The reforms seek further to remove monopoly and decentralize the structure for planning and operation of the power sector as well as improve transparency in the regulation of power utility.
The modest achievements of these reforms are the creation of the regulatory systems for the operation of the sector through the setting up of the Energy Commission and the Public Utility Regulatory Commission under Act 541 and Act 538 respectively both of 1992.
Following a review of these reforms, Government has decided that the Volta River Authority should confine itself to electricity generation while an independent Utility is established to undertake transmission so as to ensure fairness in the event of competition. However, until the anticipated Utility is established and become operational, the VRA will, as a transitional arrangement, continue to perform the transmission functions it currently performs.
By the spirit of the reforms, the VRA will also cease to distribute electricity to consumers except those identified as bulk customers and those communities identified as VRA Communities and any special arrangement agreed upon between Government and the Authority.
In this vein, the VRA will transfer its operations under the Northern Electricity Department to the Electricity Company of Ghana (ECG).
3.0 Reference Documents
In considering the Bill, the Committee made reference to the fol lowing documents.
1) The 1992 Republican Constitution of Ghana;
2) The Standing Orders of the House;
3) The Volta River Development Act 1961 (Act 46); and
4) The Energy Commission Act 1997 (Act 541).
4.0 Deliberations
In the course of its deliberations, the Committee held three (3) meetings and had discussions with the sector Minister, hon. Mike Oquaye, the Deputy Minister, hon. K. T. Hammond, legal and technical officers of the Ministry, the Chief Executive of the VRA, Mr. Joshua Kofi Ofedie as well as legal and technical officers of the VRA.
The Commit tee a lso rece ived memoranda from Public Utility Regulatory Commission, the Electricity Company of Ghana, the Osudoku Traditional Area and the chief of Natriku, Nene Tetteh Amoako IV.
Furthermore, the following members of Parliament, representing their consti- tuencies, had discussions with the Committee: Hon. Kenneth Dzirasah -- South Tongu, hon. Charles S. Hodogbey -- North Tongu, and hon. David T. Assumeng -- Shai Osudoku.
5.0 observation
The Committee observed that the establishment of a utility company to undertaken transmission is necessary if Government is to achieve its objective of attracting private sector investment in the power sector as a level playing field would be created between and among power generating companies.
Furthermore, the Committee observed that restricting VRA from supplying directly to distributors and bulk customers would create an equal playing field for distribution companies in dealing with
consumers. This situation would serve as incentive to attract private investors into the distribution chain of the power industry.
The Committee was informed that in line with the spirit of the reforms, Volta River Authority would eventually hand over the Northern Electricity Department (NED) to ECG.
The Committee, however, wishes to caution that in undertaking the exercise, care must be taken to ensure that transfer of human resources are not done to the detriment of existing employees of VRA/
NED.
The Commit tee , a f te r carefu l scrutiny, wishes to propose the following amendment to the Bill at the consideration stage.
6.0 Proposed Amendments
Clause 2, (4) (2) line 2 after mis- behaviour delete the rest of the sentence.
The Committee is of the view that inclusion of the deleted sentence is superfluous.
Clause 4, delete the whole of “clause
4”.
Clause 6, paragraph (c), sub-paragraph (iii) after “Akosombo” insert “Natriku- Akuse”.
The Committee was convinced with documentary evidence that though the Dam is called Kpong, it is actually located at Akuse.
Clause 9, subclause (1), line 1, delete “Despite” and insert “Notwithstanding”.
The amendment is to make the draft language conform to existing ones.
Clause 9, subclause (3), line 3 after “shall” delete “despite” and insert
“notwithstanding”.
7.0 conclusion
In conclusion the Committee wishes to state that in view of the fact that Government alone can no longer bear responsibility for the generation, transmission and distribution of electricity in the country coupled with the need to make the industry attractive to the private sector, the Committee therefore wishes to recommend to the House to adopt its Report and approve the Volta River Development (Amendment) Bill subject to the proposed amendments.
Respectfully submitted.
