Ghana: ECG PSP Faces Stiff Opposition From TUC, PUWU

The Government of Ghana’s plan to introduce private sector participation in the electricity retail sector of both Electricity Company of Ghana (ECG) and Northern Electricity Distribution Company (NEDCo) has sparked opposition from the Trades Union Congress (TUC).

The TUC had vowed to resist complete privatization of ECG, prompting the Minister of Energy and Green Transition, Mr John Abdulai Jinapor, to clarify the stance of government.

According to him, government is seeking to involve Private Sector Participation (PSP) in the revenue collection section of ECG and NEDCo operations, in order to enhance revenue collection and improve efficiency in power distribution.

However, at a press conference on Thursday, April 10, 2025, which was addressed by Public Utilities Workers Union (PUWU), the group resolved that they do not want either a complete privatization or private sector participation in ECG or NEDCo.

The union acknowledged the challenges in ECG operations, notably financial burden due to take or pay contracts, revenue collection bottlenecks, high cost of electricity procurement, excessive political interferences in ECG’s management, appointment of board members without recourse to competence, but said these do not warrant private sector participation.

The union emphasised that ECG remains a critical national asset, essential for driving Ghana’s economic development, ensuring national sovereignty and energy security, and fostering social equity.

“While the challenges facing ECG are significant, ranging from political interference to operational inefficiencies, privatization/PSP is not a viable or sustainable solution,” the union members said.

They argued that historical failures of privatization efforts in Ghana and across Africa demonstrate that surrendering public utilities to private investors often exacerbates existing inefficiencies, compromises national sovereignty, creates unemployment, implicates labour rights, and threatens energy security.

The union shared the view that addressing ECG’s challenges requires targeted reforms that would tackle the root causes of inefficiencies, such as depoliticizing management, enhancing accountability, and implementing effective controls in the energy value chain.

They further stressed the urgent need for renegotiation of Independent Power Purchase contracts from take-or-pay to take-and-pay, competent and merit-based appointments, ECG’s participation in the SHEP implementation, and the modernization of infrastructure can transform ECG into a financially viable and operationally efficient entity.

Instead of giving out ECG and NEDCo to private entities, they suggested that the Government of Ghana should give opportunities to ECG and also allow the company to borrow from the capital market to provide the necessary capital to strengthen the company’s operations while maintaining public ownership.

They called on government to prioritize the long-term interest of its citizens by ensuring that ECG remains under public control to guarantee affordable and equitable access to electricity, preserves national sovereignty, protects jobs, and supports broader socio-economic development.

Source:https://energynewsafrica.com