The Public Utility Workers’ Union (PUWU) of TUC-Ghana has kicked against the government’s plan to introduce private sector participation in the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCo), warning that the move risks worsening existing inefficiencies and compromising energy security.

Addressing the media at a press conference in Accra on Thursday, April 10, the union described the government’s proposal as flawed and lacking a true understanding of the challenges in the energy sector.

The press conference followed a Radio Ghana interview by the Minister for Energy and Green Transition, in which he appealed for public support for the privatisation of ECG’s retail operations.

PUWU said the government’s focus on ECG’s retail inefficiencies was misleading.

“We do not deny that there are inefficiencies in the operations of ECG and, for that matter, State-Owned Enterprises,” the union said. “It is, however, disingenuous for anyone to suggest that the inefficiencies are only at the retail end of ECG's operation.”

They maintained that the challenges in the sector are rooted in political interference, flawed procurement processes, poor governance, and weak regulatory oversight.

Among the key issues highlighted in their position paper were the financial burden of take-or-pay contracts, recurring metering challenges, electricity pricing in foreign currency, and the frequent politically-motivated changes in ECG leadership.

“In the past 15 years, ECG has had seven Managing Directors. These frequent changes, often politically motivated, disrupt ECG’s long-term plans and operations,” PUWU stated.

They also criticised the practice of appointing board members without merit and the influence of political appointees in procurement, which has led to the supply of substandard equipment.

PUWU proposed alternative solutions, including the formation of a stakeholder board involving civil society and labour, setting clear performance targets for ECG leadership, strengthening the role of the Energy Ministry, and allowing ECG to access funding from the capital market to improve its operations.

They also called for the renegotiation of power generation contracts in cedis instead of dollars and reforms to the SHEP programme to give ECG a more direct role.

“It must be emphasised that ECG remains a critical national asset, essential for driving Ghana’s economic development, ensuring national sovereignty, and fostering social equity,” the union stressed.

They warned that privatisation had failed in other African countries and often resulted in job losses, increased tariffs, and reduced public control over vital utilities.

“The TUC and its affiliates will resist any attempt by the government to cede ECG/NEDCo, in whole or in part, to any private entity to operate,” PUWU stated, reaffirming their commitment to a resolution passed at the TUC’s 10th Quadrennial Delegates Congress in 2016.