New Electricity Company Launched In Northern Region

The Northern Electricity Distribution Company (NEDCo), a subsidiary of the Volta River Authority (VRA) has been launched in Tamale the Northern Regional capital, with a vision to become the leading utility for providing electricity distribution services in Ghana and the West African Sub-region.

The operationalisation of VRA/NEDCo is part of the Power Sector Reforms started in the 1990s, which followed the establishment and similar operationalisation of the Ghana Grid Company (GRDICo) in 2005 and 2008 respectively. 

The intended purpose of the VRA/NEDCo operationalisation is to bring additional resources, from both external and internal sources to supplement VRA’s on-going support of the current Northern Electricity Department (NED) operations, as well as provide it with the right organizational structure to manage its affairs more effectively.

After VRA/NEDCo’s operationalisation, it would be able to deal directly with government and regulators such as the Public Utilities Regulatory Commission (PURC), on key issues pertaining to its viability and sustainability. In that regard, NEDCo would be eligible to file a tariff submission to PURC separate from what is filed by VRA. NEDCo would also be able to deal directly with multilateral agencies such as the World Bank and more clearly specify its needs and requirements for the successful delivery of its mandate.

Also, internally VRA/NEDCo will have a new organizational structure that would allow it to manage its affairs more directly without recourse or reference to VRA. This should also serve to streamline decision-making in the procurement of its strategic equipment and spares, the construction of needed buildings, and the development of its employees.

VRA/NEDCo, as a subsidiary company of VRA, would continue to receive financial and other required support from VRA until such a time that it becomes a viable and self-sustaining entity.

Operationalisation of NEDCo

According to the Managing Director of NEDCo John Nuworklu, the decision to operationalise VRA/NEDCo was supported by the Volta River Development (Amendment) Act 692 of 2005, which repealed PNDC Law 171 of 1987. Act 692 he said enabled VRA to set up VRA/NEDCo to take over electricity distribution activities in the Northern sector of the country. “Act 692 also mandated VRA to continue to retain responsibility for VRA/NEDCo operations over an undefined transition period”, he added.

Mr. Nuworklu noted that VRA/NEDCo’s vision of becoming the leading electricity service provider in Ghana and the Sub-region has been burdened by many challenges which include dispersed distribution network with higher than normal operations and maintenance cost; outdated distribution network which needs rehabilitation and reinforcement; and inadequate funding for renewal of infrastructure.

He said even though the challenges were daunting, they were surmountable in view of the unwavering commitment and support of government, VRA, VRA/NEDCo and customers.

Policy Statement and Programme of Action

Mr. Nuworklu confessed that there was work to be done everywhere and the state of VRA/NEDCo calls for bold and swift action now, stressing that “we will drastically improve service delivery to our cherished customers. We will also make VRA/NEDCo, an organization of choice for genuine business transactions, and a company which people will be eager to identify with as well as feel proud to work for.”  

We are determined to lay a new foundation for operational excellence, cost recovery and growth; therefore transforming VRA/NEDCo from a slow-moving and loss-making institution into an efficient, customer-sensitive and high performing organization, he promised. 

Deputy Minister for Energy, Alhaji Abdulai Inusah Fuseini

Management, the MD noted would explore existing opportunities to expand VRA/NEDCo’s market share within its operational area as well as across the borders of Ghana.

A Deputy Minister of Energy Alhaji Abdulai Inusah Fuseini who delivered a keynote address assured NEDCo of the unflinching support of government in ensuring the success of the company. “The doors of the Ministry of Energy are widely opened to partner with you in all areas of your endeavours to enable you meet your mission of providing adequate and reliable electricity supply to citizens in the northern part of the country,” he added.

Meanwhile, the staff strength of VRA/NEDCo has grown from about 450 in 1987 to close to 900 currently, representing a mere 100% rise whereas the customer population has grown from below 18,000 to over 380,000, representing a massive 2000% rise. That notwithstanding, the bulk of VRA/NEDCO’s customers are in the residential and “subsidized” category often referred to as lifeline customers.