The Ministry of Energy and Green Transition has emphatically denied plans to sell the Electricity Company of Ghana (ECG), insisting that approved private sector participation represents operational enhancement rather than divestiture. The clarification issued Tuesday, December 30, addresses concerns raised by utility workers who staged nationwide symbolic protests the previous day.
Ministry spokesperson and Head of Communication Richmond Rockson explained that the Private Sector Participation (PSP) framework involves strategic deployment of private sector expertise through multiple concession arrangements targeting specific operational areas. The approach aims to improve billing, revenue collection, service delivery, and reduce aggregate technical and commercial losses within the state owned power distributor.
Workers led by the Public Utilities Workers Union (PUWU) of the Trades Union Congress (TUC) hoisted red flags across ECG operational offices nationwide on December 29, expressing strong opposition to government’s intention to appoint a transaction adviser for the utility’s transition into PSP. The symbolic action marked the beginning of staff demonstrations reinforcing union positions that ECG could be revived through internal reforms.
PUWU General Secretary Timothy Nyame characterized the planned appointment as premature and rushed, expressing concern that the move appears influenced by external interests seeking control over a strategic national asset. The union insists that an ongoing turnaround programme jointly agreed with the Ministry of Energy should be allowed to run its full course before considering private sector involvement.
The Ministry emphasized that Cabinet, under President John Dramani Mahama’s leadership, approved PSP in ECG during April 2025 as part of a broader reform agenda. Officials acknowledged that while the company’s performance has improved since January 2025, critical challenges persist that could threaten financial sustainability and power sector stability if left unaddressed.
Government officials described selecting a transaction advisor as a technical and procedural step necessary to properly structure the PSP framework. The Ministry stressed this selection does not constitute or imply outright sale, calling for calm and restraint as engagements with the union continue in good faith.
PUWU issued its initial opposition statement December 23, expressing surprise at media reports suggesting government intended to appoint a transaction adviser before Christmas. The union noted the announcement came during an already underway turnaround programme collaboratively implemented by ECG management and workers under Ministry of Energy supervision.
The reform initiative emerged from constructive engagements with the Energy Minister and was designed to revive ECG through internal reforms rather than privatization. PUWU highlighted significant gains made over five months, including improved revenue collection, drastically reduced system losses, and stabilized power supply for consumers nationwide.
Senior government officials have publicly acknowledged these achievements. Finance Minister Cassiel Ato Forson commended the turnaround during the 2026 Budget presentation on November 13, 2025. Majority Leader Mahama Ayariga referenced progress during Parliamentary debate on November 27. Energy and Green Transition Minister John Abdullai Jinapor has similarly noted improvements.
PUWU argued that ECG has demonstrated capacity to recover and remain sustainable through local expertise, strong management support, worker commitment, and absence of political interference without requiring rushed transfer into private hands. The union questioned what transaction still requires advice when ongoing reforms already address company challenges.
The Ministry maintains it has sustained open and constructive engagement with PUWU and will continue addressing concerns to resolve outstanding issues. Officials reiterated government commitment to protecting worker interests while strengthening ECG to ensure a reliable, efficient, and sustainable power sector for all Ghanaians.
Historical context complicates current reform efforts. A previous attempt to introduce private sector participation under the New Patriotic Party government between 2018 and 2020 ended controversially. The Power Distribution Services arrangement collapsed after the government terminated the concession amid disputes over performance and compliance with contractual terms.
That experience heightened worker skepticism toward private sector involvement in ECG operations. PUWU warned against repeating past mistakes that disrupted service delivery and created uncertainty for staff. The union emphasized protecting public interest, safeguarding jobs, and ensuring reliable, affordable electricity supply remains paramount.
Industry analysts note that ECG faces substantial operational challenges including high commercial losses, inefficient billing systems, revenue collection difficulties, and aging infrastructure requiring significant capital investment. While internal reforms have yielded measurable improvements, questions persist about whether the company can achieve financial sustainability without external expertise and resources.
Proponents of private sector participation argue that concession arrangements provide access to technical capacity, management systems, and investment capital that accelerate transformation beyond what internal reforms alone can accomplish. They point to successful PSP models in other African countries that maintained state ownership while improving operational efficiency.
Critics counter that privatization schemes often prioritize profit over service delivery, resulting in higher tariffs, reduced workforce, and neglect of rural areas with lower commercial returns. They emphasize that electricity distribution represents a strategic national asset requiring public control to ensure equitable access across all population segments.
The Ministry’s statement emphasized that the PSP framework does not constitute full privatization but rather targeted engagement of private sector capabilities in specific operational domains while government retains ownership and ultimate control. This hybrid approach aims to balance efficiency gains with public accountability.
PUWU has called on government to halt all actions toward PSP, allow the turnaround programme to continue, and subject outcomes to proper evaluation aligned with national energy distribution policy. The union insists that recent performance improvements demonstrate that ECG can achieve necessary reforms through existing collaborative structures.
The coming weeks will test whether government and workers can bridge differences through continued dialogue. PUWU maintains readiness to escalate protest actions if authorities proceed with transaction adviser appointment without addressing union concerns. The Ministry has signaled willingness to sustain engagement while advancing reform processes.
The dispute reflects broader tensions between reform imperatives and worker protection in Ghana’s state enterprise sector. As government seeks to improve public service efficiency and financial sustainability, labor organizations demand meaningful participation in decisions affecting employment security and organizational futures.
ECG’s fate carries significant implications for Ghana’s energy sector stability and economic development prospects. Reliable electricity supply remains fundamental to industrial growth, commercial activity, and household welfare. Resolving the current impasse requires balancing operational imperatives with legitimate worker concerns about their livelihoods and the utility’s public service mission.
