PUWU eager to support government to make ECG more efficient — General Secretary

The Public Utilities Workers Union (PUWU) has urged President John Dramani Mahama to take pragmatic steps in involving private sector participation in the management of the Electricity Company of Ghana (ECG) so that workers will not be left worse off.

It gave the assurance that it would lend its full support to help resolve those challenges within the power distribution company and the power sector in general.

A press release signed by the General Secretary of PUWU, Timothy Nyame, said while it welcomed any move to make the ECG more efficient, it was concerned about the approach to privatise the company.

Initially, PUWU expressed strong opposition to any plans to privatise ECG. However, Mr Nyame explained that while the union is not completely against privatisation, it has concerns about the proposed approach.

“We are not totally against the privatisation of ECG, but the mode  they want to go is what we have a problem with.

“We can vividly recall the engagement we had with the previous NDC administration regarding the issues of the power distributor ECG, PUWU’ of TUC Ghana wishes to reaffirm that its position on ECG privatisation and management remains unchanged and believes the best alternative presented still stands as the best for Ghanaians and other stakeholders,” Mr Nyame said in release.

Intention

Days after his election, President Mahama in a meeting with representatives of the World Bank, hinted at plans to privatize ECG as part of efforts to tackle inefficiencies in the country’s power distribution sector.

The proposal, which previously faced resistance from labour unions, civil society groups, and other stakeholders, is part of a broader strategy to modernise Ghana’s energy infrastructure and improve service delivery to meet the growing demands of the economy.

During the meeting with a World Bank delegation led by Mr Ousmane Diagana, Vice-President for West and Central Africa, the President emphasised the need for private sector involvement to address financial mismanagement, operational inefficiencies and inadequate service delivery at ECG.

This plan was also reemphasised by the Minister-designate for Energy, John Abdulai Jinapor, during his vetting before Parliament’s Appointments Committee last Monday.

Answering questions, the Minister-designate outlined a six-month timeline to establish a comprehensive framework for private sector participation in the operations of the ECG.

This initiative, he said, aimed to enhance efficiency and improve power distribution in the country.
 

Mr Jinapor reiterated the importance of transparency and expert input in the process.

“We believe there should be private sector participation. What we intend to do is to form a seven-member committee, comprising technical experts, legal minds, financial analysts, industry players, and even a consumer representative,” he stated.

He said the committee would evaluate global best practices to determine whether a concession model or full privatisation would be more suitable for ECG’s operations. Mr Jinapor assured the committee that the government would avoid political interference and rely on an open and transparent process.

“My target is to push for six months, but I do not want to stampede the committee. However, give or take, within this year, we should complete the framework,” he told the Appointments Committee.

Pragmatic steps

However, reacting, Mr Nyame said there was a need for more collaboration to find a lasting solution to the mirage of problems confronting the power distributor, and offered to lend the PUWU’s support.

“As a Union with membership mainly in the utilities and housing sectors of the country, we are ready to collaborate with the government in finding permanent solutions to the energy, housing and water situation and at an affordable cost to Ghanaians,” Mr Nyame said in a release.

He further stated that PUWU was very much aware of the investment done in the energy sector by both local and international partners and thus appealed to President John Mahama to sustain discussions with these partners to resolve the energy challenges.

He stressed that while PUWU does not oppose private sector participation, it is crucial to take pragmatic steps to ensure the privatisation process was carried out properly.

“So PUWU, as much as we are not against private sector participation, we should take pragmatic steps to make sure we go through proper means of doing the privatisation,” Nyame concluded.