PUWU slams ECG privatisation plan as risk to Ghana’s energy future

The Public Utility Workers’ Union (PUWU) of the Trades Union Congress (TUC) – Ghana has strongly opposed the government’s plan to involve private entities in the operations of the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCo), arguing that such a move would worsen inefficiencies and endanger the nation’s energy security.

At a press conference held in Accra on Thursday, PUWU described the government’s proposal as misguided and lacking a comprehensive understanding of the energy sector’s underlying challenges. 

The union’s stance follows a recent Radio Ghana interview with the Minister for Energy and Green Transition, who urged the public to support the privatisation of ECG’s retail operations to address inefficiencies.

PUWU, however, dismissed the government’s focus on retail-level shortcomings as misleading. “We acknowledge inefficiencies in ECG and other State-Owned Enterprises,” the union conceded, “but it is disingenuous to suggest these issues are confined to the retail end of ECG’s operations.”

The union pointed to deeper systemic problems, including political interference, flawed procurement practices, weak governance, and inadequate regulatory oversight. In a detailed position paper, PUWU highlighted specific concerns such as the financial strain of take-or-pay contracts, persistent metering issues, electricity pricing in foreign currency, and the destabilising effect of frequent leadership changes at ECG. “In the past 15 years, ECG has had seven Managing Directors, often replaced for political reasons, disrupting long-term planning and operations,” they noted.

PUWU also criticised the appointment of unqualified board members and the influence of political appointees in procurement processes, which they say has led to the acquisition of substandard equipment.

Offering alternatives to privatisation, the union proposed forming a stakeholder board with representation from civil society and labour, setting clear performance goals for ECG leadership, and empowering the Energy Ministry to enforce stronger oversight. They also urged that ECG be allowed to raise funds from the capital market, renegotiate power contracts in Ghanaian cedis rather than dollars, and reform the Self-Help Electrification Programme (SHEP) to give ECG greater control.

“ECG remains a critical national asset, vital for Ghana’s economic growth, sovereignty, and social equity,” PUWU emphasised. They warned that privatisation has failed in other African nations, often resulting in job cuts, higher tariffs, and diminished public control over essential services.

Reaffirming a resolution from the TUC’s 10th Quadrennial Delegates Congress in 2016, PUWU vowed to resist any efforts to transfer ECG or NEDCo, in whole or in part, to private hands. “The TUC and its affiliates will stand firm against this move,” the union declared.