Home Business Ghana’s Utility Union Urges IPP Contract Renegotiation

Ghana’s Utility Union Urges IPP Contract Renegotiation

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Puwu General Secretary Timothy Nyame
Puwu General Secretary Timothy Nyame

Ghana’s Public Utility Workers Union (PUWU) has demanded immediate renegotiation of Independent Power Producer contracts, citing excessive costs that exacerbate the energy sector’s financial strain.

PUWU General Secretary Timothy Nyame revealed IPP electricity prices remain significantly higher than regional benchmarks, with dollar-denominated agreements worsening Ghana’s currency volatility.

The union’s push comes as Energy Minister John Jinapor disclosed a critical GH₵1.1 billion fuel procurement need during parliamentary hearings, while enforcing electricity bill payments across government agencies.

Nyame emphasized that transitioning contracts to cedis and aligning pricing with African averages could save millions, though sector reforms continue facing delays despite mounting IPP debts.

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