The Ministry of Energy and Green Transition has called for calm and restraint following nationwide protests by workers of the Electricity Company of Ghana (ECG) over government plans to introduce Private Sector Participation in the utility’s operations.
The statement, released on Tuesday, December 30, stressed that the Private Sector Participation (PSP) framework for ECG is not a sale but a strategy to strengthen operations. The Ministry called for calm and restraint as engagements continue in good faith, explaining that selection of a transaction advisor is a technical and procedural step to properly structure the PSP framework and does not in any way constitute or imply an outright sale of ECG.
The Ministry outlined government commitment to protecting the interests of ECG workers while ensuring the utility becomes more reliable, efficient, and sustainable. Government remains committed to protecting the interests of workers, strengthening ECG, and ensuring a reliable, efficient, and sustainable power sector for all Ghanaians, the statement added.
The clarification follows symbolic nationwide protests on December 29 led by the Public Utilities Workers Union (PUWU) of the Trades Union Congress (TUC). Staff hoisted red flags and wore red bands at ECG offices across the country to express strong opposition to government intention to appoint a transaction adviser for ECG’s transition into PSP.
Speaking to the media, PUWU General Secretary Timothy Nyame said the hoisting of red flags marked the beginning of a series of staff actions aimed at reinforcing the union’s position that ECG could be revived through internal reforms. We see this appointment as being influenced by external interests seeking to take control of a strategic national asset for the benefit of a few individuals, rather than in the interest of Ghanaians, he stated.
The union expressed surprise at reports suggesting government intends to appoint a transaction adviser before year end, noting that it comes at a time when an agreed turnaround programme for ECG is already underway. According to PUWU, the turnaround programme was jointly agreed with the Ministry of Energy and is being implemented collaboratively by ECG management and workers under union leadership.
PUWU highlighted what it described as significant gains made over the past five months through exceptional commitment, discipline, and dedication from ECG workers. The union cited improved revenue collection, drastic reduction in system losses, and stabilisation of power supply for consumers across the country. General Secretary Nyame revealed that in fulfillment of the turnaround programme, ECG workers achieved a record 90 percent improvement in revenue alongside reduced system losses.
These achievements have been publicly acknowledged by senior government officials. PUWU referenced commendations by Finance Minister Dr Cassiel Ato Forson during presentation of the 2026 Budget on November 13, 2025, comments by Majority Leader Mahama Ayariga on the floor of Parliament on November 27, and remarks by Energy and Green Transition Minister John Abdullai Jinapor.
In its response, the Ministry explained that Cabinet under President John Dramani Mahama approved PSP in ECG in April 2025 as part of a broader reform agenda. The objective is to improve billing and revenue collection, enhance service delivery, and reduce aggregate technical and commercial losses within the company.
While there has been significant improvement in ECG’s overall performance since January 2025, critical challenges still persist, the Ministry noted, warning that these challenges could threaten the company’s financial sustainability and the stability of the power sector if left unresolved.
The Government of Ghana does not intend to, and will not, sell ECG, the statement stressed. The approved Private Sector Participation framework is not a sale or divestiture. Rather, it involves the strategic deployment of private sector expertise through multiple concession arrangements to support and improve specific operational areas of ECG.
The Ministry emphasized that the PSP framework is aimed at operational improvements, deploying private sector expertise in strategic areas to enhance service delivery. The statement was signed by Richmond Rockson, the Ministry’s Spokesperson and Head of Communication.
PUWU is urging government to immediately halt all actions toward PSP, allow the turnaround programme agreed with the Ministry of Energy, ECG management and workers to run its full course, and ensure outcomes of the programme are evaluated and aligned with national energy distribution policy. The union insists that any decision on ECG’s future must be guided by due process, transparency, and broad stakeholder consultation.
The controversy over private sector involvement in ECG comes years after the collapse of the Power Distribution Services (PDS) concession in 2019. That failed privatization attempt resulted in Ghana forfeiting approximately 190 million US dollars in Millennium Challenge Corporation compact funding and triggered lengthy arbitration proceedings that concluded in Ghana’s favor.
Richmond Rockson described the PDS episode as arising from weak decisions and lapses in the selection and approval processes undertaken under the previous administration. Those missteps contributed to significant financial losses for the country and damaged confidence in private sector participation frameworks for state utilities.
According to Rockson, government insistence on 51 percent local ownership during the PDS process discouraged several experienced international firms from participating in the deal. We had a lot of international companies from Germany, France, and the United States with the requisite expertise, he explained. But because government insisted that the Ghanaian partners must hold 51 percent, many of these companies pulled out.
The local and Angolan partners lacked the financial capacity to raise the required 250 million dollars, leading to several unmet conditions, including a fraudulent insurance guarantee that ultimately collapsed the deal. An arbitration tribunal dismissed all claims made by PDS and ruled that the guarantee underpinning the concession was void.
ECG is wholly owned by the Government of Ghana and is responsible for electricity distribution in the southern half of the country. The Northern Electricity Distribution Company handles distribution in the northern regions. Both utilities face persistent challenges including high technical and commercial losses, revenue collection difficulties, and aging infrastructure requiring substantial investment.
The Ministry’s statement acknowledged that while ECG has recorded some improvements since January 2025, the company continues to face significant operational and financial challenges that could threaten its future and the stability of Ghana’s power sector if left unresolved. Government intervention is aimed at strengthening ECG, not weakening it, the Ministry stressed.
PUWU maintains that ECG has demonstrated capacity to recover and remain sustainable through local expertise, strong management support, worker commitment, and absence of political interference, without the need for a rushed transfer of the utility into private hands. The union reaffirmed its commitment to protecting the public interest, safeguarding jobs, and ensuring a reliable and affordable electricity supply for Ghanaians.
The Ministry concluded by calling on traditional authorities and worker representatives to channel requests and complaints through proper administrative procedures to ensure timely resolution. It encouraged continued engagement in good faith as government works to structure the PSP framework in a manner that protects worker interests while addressing ECG’s operational challenges.
