PUWU Opposes ECG Privatization, Warns of Potential Risks to National Energy Stability

The Public Utility Workers’ Union (PUWU), under the umbrella of the Trades Union Congress (TUC) – Ghana, has firmly rejected the government’s intention to allow private participation in the management of the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCo). The union believes that such a move would not only fail to solve the sector’s challenges but could further compromise Ghana’s energy security.

Speaking at a press briefing in Accra on Thursday, PUWU described the government’s privatization plan as shortsighted and ill-informed. The union criticized the approach for focusing narrowly on perceived inefficiencies in ECG’s retail operations, rather than addressing the broader structural issues affecting the entire electricity distribution sector.

This pushback follows a recent interview by the Minister for Energy and Green Transition on Radio Ghana, in which he advocated for public support for the partial privatization of ECG’s retail business. The minister suggested that involving the private sector would help streamline operations and improve service delivery.

In response, PUWU argued that inefficiencies within ECG are not limited to the retail level but stem from deep-rooted systemic problems. These include political interference in management decisions, poor procurement practices, governance lapses, and weak regulatory oversight.

According to PUWU, frequent changes in leadership at ECG have hindered long-term planning and performance. “In the last 15 years, ECG has had seven different Managing Directors, many of whom were replaced due to political considerations,” the union said. This lack of continuity, it argued, has significantly disrupted the company’s strategic development.

The union also pointed to the influence of political appointees in procurement processes, which it claims has led to the purchase of substandard equipment and materials, negatively impacting service quality. Additionally, PUWU highlighted other ongoing issues such as the burden of take-or-pay energy contracts, metering inefficiencies, and the use of foreign currencies in electricity pricing, all of which strain ECG’s finances.

Instead of privatization, PUWU proposed a number of reforms aimed at strengthening ECG internally. These include establishing a stakeholder board involving civil society and labor representatives, setting performance targets for ECG leadership, and giving the company the autonomy to raise funds from the capital market.

The union also called for the renegotiation of energy agreements in Ghanaian cedis to stabilize costs and advocated for reforms to the Self-Help Electrification Programme (SHEP), which would give ECG more control over rural electrification efforts.

PUWU warned that privatization in other African countries has often led to negative outcomes, including job losses, higher tariffs, and diminished public accountability. “ECG is a strategic national asset,” the union stressed. “It must remain in public hands to safeguard Ghana’s energy future and ensure equity in access to electricity.”

Reaffirming its long-standing position, PUWU cited a 2016 resolution by the TUC that firmly opposed any move to privatize ECG or NEDCo. “We remain committed to resisting any attempt—whether partial or full—to hand over these critical institutions to private entities,” the union declared.