Home Business GridCo cuts off power to VALCO over US$30 million debt

GridCo cuts off power to VALCO over US$30 million 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 US$30million outstanding debt to the power transmitter.

A statement issued by GRIDCo said the decision was made by the management

after several attempts to get VALCO to honour its payment obligations failed.

The decision to disconnect VALCO is part of ongoing debt collection measures to mobilize 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¢1.2 billion.

At its recent Annual General Meeting in November 2019, the company announced that its network expansion efforts have been hampered due to the current financial situation.

Commenting on the decision, Jonathan Amoako-Baah, Chief Executive of GRIDCo 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.

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