The Public Utility Workers’ Union (PUWU) has strongly opposed the government’s plans to privatize the Electricity Company of Ghana (ECG), advocating for reforms within the public framework as an alternative.
Speaking at a news conference in Accra, Mr. Timothy Nyame, General Secretary of PUWU, presented the union’s position, which outlined several alternatives to privatization while highlighting key challenges within the energy sector.
In its position paper submitted to the Ministerial Committee, PUWU identified issues such as take-or-pay contract burdens, revenue collection inefficiencies, high electricity procurement costs, political interference, poor corporate governance, and procurement irregularities.
The union proposed the creation of a stakeholder board consisting of experts from Think Tanks and social groups to ensure checks and balances.
Additionally, PUWU recommended empowering the Energy Ministry to oversee State-Owned Enterprises and setting clear, accountable deliverables for the ECG Managing Director.
PUWU called for open, competitive procurement for electricity generation, renegotiating tariffs in cedis instead of dollars, reforming the PURC Act to introduce penalties for non-performance, and integrating ECG into the SHEP project.
The union also underscored the need to eliminate political interference in the energy sector to ensure sustainable reforms.
Describing ECG as a critical national asset, PUWU argued that privatization was an unsuitable solution.
The union pointed out that similar efforts in Ghana and across Africa had historically resulted in inefficiencies, job losses, compromised labour rights, and risks to energy security.
Instead, PUWU advocated for targeted measures, including depoliticising ECG’s management, enhancing accountability, renegotiating IPP contracts, adopting merit-based appointments, and upgrading infrastructure.
To strengthen ECG under public ownership, PUWU also suggested granting the company access to borrow from the capital market, enabling it to secure the resources needed to enhance its operations.
PUWU Advocates ECG Capital Market Access
In a related development, has urged the government to allow the Electricity Company of Ghana (ECG) to access capital markets as a practical alternative to privatization.
The PUWU General Secretary, Timothy Nyame, emphasized the union’s stance against private sector participation in ECG, advocating for the company to secure funding independently while maintaining public ownership.
PUWU stated that capital market access, paired with opportunities reserved for private entities, would address ECG’s financial challenges effectively.
In a position paper submitted to the Ministerial Committee, PUWU highlighted challenges in the energy sector, including financial burdens, revenue collection issues, high procurement costs, political interference, ineffective governance, and procurement irregularities.
It described privatization as unsustainable and proposed several reforms.
These reforms include forming a stakeholder board, empowering the Energy Ministry to oversee operations, setting clear deliverables for the ECG Managing Director, enforcing competitive procurement, renegotiating tariffs in cedis, reforming the PURC Act, integrating ECG into the SHEP project, and removing political interference.
The union underscored the importance of strengthening ECG as a public utility to ensure affordable electricity, preserve national sovereignty, protect jobs, and support socio-economic development.
