PUWU outlines better alternatives to ECG privatisation

PUWU outlines better alternatives to ECG privatisation

The Public Utility Workers’ Union (PUWU) has taken a firm stand against the government’s plans to privatize the Electricity Company of Ghana (ECG), urging a comprehensive reform agenda that keeps the power distributor under public control.
At a press conference in Accra, PUWU’s General Secretary, Mr. Timothy Nyame, laid out a sweeping alternative vision that seeks to revitalize ECG without ceding control to private interests.

Position paper outlines sector challenges
In a detailed position paper submitted to the government’s Ministerial Committee on the ECG restructuring process, PUWU identified deep-rooted issues that have undermined the utility’s performance.
These include the controversial take-or-pay contracts that have saddled ECG with financial liabilities, revenue collection inefficiencies, high electricity procurement costs, persistent political interference, poor corporate governance, and widespread procurement irregularities.
According to the union, these structural problems have less to do with ECG’s ownership model and more with a systemic failure to enforce accountability, transparency, and good governance.

Alternative vision for reforms
Rather than handing over ECG to private actors, PUWU proposed a reform package that would strengthen public sector oversight and efficiency.
Central to their proposal is the establishment of a stakeholder board that would include experts from think tanks, civil society organizations, and professional bodies.
This board, they argued, would serve as an independent layer of accountability, offering technical guidance and checking undue political influence.
The union also called for a stronger role for the Ministry of Energy in supervising State-Owned Enterprises (SOEs) within the energy sector.
To make leadership more effective, PUWU recommended clearly defined performance deliverables for the ECG Managing Director.

Transparent procurement and tariff reform
In an effort to reduce costs and curb inefficiencies, PUWU urged the government to enforce open, competitive procurement processes in electricity generation and distribution.
They further proposed that existing Independent Power Producer (IPP) contracts be renegotiated, shifting tariffs from dollars to Ghana cedis to reduce exchange rate exposure and long-term liabilities.
Another key proposal was the reform of the Public Utilities Regulatory Commission (PURC) Act to introduce penalties for underperformance and non-compliance.
The union also recommended integrating ECG into the Self-Help Electrification Program (SHEP), enhancing alignment between rural electrification efforts and national grid operations.

Privatisation seen as risky and unsustainable
Describing ECG as a strategic national asset, PUWU warned that privatization would compromise energy security, disrupt labour protections, and introduce profit-first motives that often run counter to public interest.
Mr. Nyame pointed to past privatization attempts in Ghana and other African countries, which he said led to job losses, weakened labour rights, and poor service delivery.

“Privatization is not a sustainable solution,” he declared. “ECG’s problems are not because it is publicly owned. They are because of political interference, poor oversight, and weak systems.”

Push for capital market access
To address ECG’s financial challenges without privatization, PUWU proposed a bold financing model that would allow the company to raise funds independently through the capital market.
By granting ECG access to long-term capital, PUWU believes the company can invest in modernizing infrastructure, improving service delivery, and upgrading its technical and administrative operations.
“The private sector already has access to the capital market. Why can’t a public utility like ECG do the same?”
Nyame questioned, arguing that ECG should be empowered to borrow and invest while maintaining its public ownership structure.

Merit-based appointments and depoliticization
One of the most persistent criticisms of ECG management has been political interference, often manifesting in the form of politically motivated appointments and misaligned procurement decisions.
PUWU strongly advocated for depoliticizing ECG’s leadership, urging the adoption of merit-based appointments to key management roles.

According to the union, sustainable reform hinges on insulating ECG from partisan control, ensuring that its decisions are guided by technical expertise, efficiency, and accountability.

Affordability and development
In its final plea, PUWU emphasized the broader implications of keeping ECG in public hands.
The union said that a strong, publicly owned ECG is essential for preserving national sovereignty, protecting jobs, ensuring affordable electricity, and promoting socio-economic development.
They argued that while the company faces serious challenges, these can be addressed through deliberate policy reforms, not privatization.
PUWU’s recommendations represent a call to action—urging the government to prioritize governance, transparency, and long-term national interest over short-term financial relief.
“The power sector is too important to be driven by profit motives alone,” Nyame stressed. “We must fix ECG, not sell it.”

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