Ghana’s main labor unions have mounted strong opposition to government plans for private sector involvement in electricity distribution companies, arguing recent revenue improvements prove state utilities can succeed without privatization.
The Trades Union Congress (TUC) and Public Utility Workers’ Union (PUWU) presented evidence of substantial financial recovery at the Electricity Company of Ghana (ECG) during a press conference in Accra this week. Union leaders pointed to revenue growth between July and December 2025 as proof that internal reforms work better than transferring control to private operators.
TUC General Secretary Joshua Ansah told reporters that ECG’s average monthly revenue jumped from roughly GH¢900 million to approximately GH¢1.7 billion during the period. The increase of nearly 90 percent was achieved through collaborative efforts among workers, management and the Ministry of Energy and Green Transition, he explained.
The revenue figures align with announcements made by Finance Minister Dr. Cassiel Ato Forson during the 2026 Budget presentation on November 13, 2025. He attributed the improvement to strict enforcement of the Cash Waterfall Mechanism (CWM), a payment system designed to ensure transparent fund distribution across the power sector.
Timothy Nyame, General Secretary of PUWU, emphasized that the turnaround programme resulted from extensive consultations with the Energy Minister and was deliberately structured to revive ECG through internal changes rather than privatization. The reform initiative focused on revenue mobilization, enforcement against illegal connections and operational efficiency.
Union representatives argued the gains have produced tangible benefits across the energy sector. More consistent payments to power producers have reduced threats by Independent Power Producers (IPPs) to shut down plants over unpaid arrears. Improved cash flow has enabled ECG to maintain infrastructure and address service delivery issues.
The unions also referenced progress at the Northern Electricity Distribution Company (NEDCo), where losses reportedly dropped by approximately eight percentage points during the same period. These improvements at both distribution companies demonstrate that publicly managed utilities can achieve financial sustainability with proper support, union leaders maintained.
Despite these developments, government continues pursuing private sector participation arrangements. The Energy Ministry describes its approach as distinct from outright privatization, involving private entities managing specific operational areas while ECG remains under state ownership.
However, union leaders contend any shift toward private involvement disregards recent achievements and risks undermining a system showing clear signs of recovery. They questioned why government would offer incentives and guarantees to potential private concessionaires while hesitating to provide equivalent support for public sector improvements.
PUWU issued a statement in late December 2025 expressing surprise at media reports suggesting government intended to appoint a transaction adviser for ECG’s transition into Private Sector Participation (PSP) before Christmas. The union described the move as premature and rushed, questioning what transaction requires advisory support when existing reforms already address ECG’s challenges.
Nyame told Asaase Radio that PUWU received no official notification from the Energy Ministry about plans to appoint a transaction adviser before information appeared in media reports. The union subsequently wrote to the Energy Minister expressing opposition after attempts to reach him for clarification failed.
The unions staged visible protests including hoisting red flags across ECG operational offices nationwide in late December. Nyame characterized the action as the beginning of staff demonstrations reinforcing their position that ECG can be revived through internal reforms rather than privatization.
Union representatives cautioned that the privatization push appears influenced by external interests seeking control of a strategic national asset. They stressed that any decisions about ECG’s future must involve due process, transparency and broad stakeholder consultation.
Both TUC and PUWU called for government to halt all privatization related processes, extend the current turnaround programme and establish clearer management deliverables with greater oversight by state regulators. They insisted the agreed reform programme should be fully implemented, monitored and objectively evaluated before alternative options receive consideration.
The unions rejected characterizations of ECG as broken beyond repair. They argued that with sustained support and accountability, the utility demonstrated capacity to recover and remain sustainable through local expertise, strong management and worker commitment without political interference.
Nyame acknowledged ECG has faced significant challenges including revenue mismanagement, political interference and inefficiencies within management structures. A comprehensive 2024 audit conducted by PricewaterhouseCoopers uncovered a GH¢5.3 billion revenue discrepancy, revealing ECG continued under declaring revenues to regulators.
However, he maintained these problems stem from governance failures rather than inherent institutional weaknesses. He cited examples from Nigeria and South Africa where power sector privatization has not delivered expected benefits, urging Ghana to learn from those experiences.
The unions emphasized their opposition focuses on the proposed approach rather than blanket resistance to any private involvement. They advocated for pragmatic steps ensuring proper processes if government pursues private sector participation.
Labor representatives noted they engaged previous administrations on ECG’s future and jointly developed turnaround roadmaps as alternatives to privatization. They stressed their position on ECG management remains unchanged, believing public sector solutions best serve Ghanaians and stakeholders.
The unions expressed willingness to collaborate with government finding permanent solutions to energy sector challenges at affordable costs for consumers. They reaffirmed commitment to protecting public interest, safeguarding jobs and ensuring reliable electricity supply.
Government officials have defended the privatization consideration as necessary to address persistent inefficiencies and financial sustainability concerns. President John Dramani Mahama previously described ECG as the “sick man of the power sector” during meetings with Independent Power Producers.
The administration argues private sector participation could bring needed expertise, capital and management practices to improve service delivery and operational efficiency. Officials maintain the approach would retain state ownership while leveraging private sector strengths.
Finance Minister Forson highlighted that government successfully renegotiated all power purchase agreements with IPPs, saving over US$250 million and restructuring GH¢1.1 billion in energy sector debt over a four year period. He reported government is fully current on payment obligations to IPPs under renegotiated agreements.
These fiscal improvements provide context for the broader energy sector reform debate. Government officials point to debt reduction and improved payment discipline as evidence of progress, while also acknowledging persistent challenges requiring additional interventions.
The disagreement highlights ongoing tensions in Ghana’s energy sector where financial sustainability, service delivery and national ownership remain contested among labor groups, policymakers and civil society stakeholders. As 2026 begins, the standoff shows no signs of quick resolution.
ECG recorded its highest ever monthly revenue of GH¢1.74 billion in July 2025, according to Acting Managing Director Julius Kwame Kpekpena. He disclosed the milestone during interactions with Parliament’s Energy Committee in September, noting that internal changes were yielding results.
Kpekpena also reported significant cost reductions alongside revenue gains. Administrative costs dropped from GH¢279 million to GH¢169 million while overall spending fell from GH¢110 million to GH¢77 million within the first half of 2025.
The performance data forms the empirical foundation for union arguments that ECG can achieve sustainability without private sector takeover. Labor representatives insist these results justify extending current reforms rather than pursuing external management arrangements.
