Staff groups of the Volta River Authority (VRA) and the Northern Electricity Distribution Company (NEDCo) have strongly opposed a government proposal to introduce private sector participation (PSP) in electricity distribution across northern Ghana.
They argue that the plan would effectively hand over “complete operational control to private entities, while ignoring the structural challenges peculiar to NEDCo’s mandate,” adding that it is “unsuitable for the unique operational context of northern Ghana,” and amounts to “full privatisation disguised as participation.”
The groups also raised concerns about job security, questioning the fate of more than 1,300 NEDCo employees who could be left largely underutilised under the proposed arrangement.
In a March 25, 2026, communication addressed to the Minister of Energy and Green Transition, Dr John Jinapor, the staff groups said their position followed a “thorough examination of the Guiding Framework” for the proposed PSP model.
According to them, the framework proposes a structure in which NEDCo retains asset ownership of key infrastructure, while private operators assume control of technical and commercial functions.
They warned that this could undermine supply reliability, service quality, billing accuracy, customer responsiveness, and revenue collection, while also rendering a large section of staff idle.
The communication stressed that over 1,300 employees have built significant operational expertise over the years, asking: “Would this limited role of NEDCo as an asset owner in the Guiding Framework require the retention of the entire workforce?”
The groups further argued that systemic challenges such as low, non-cost-reflective tariffs and high levels of lifeline customers make the model unattractive and difficult to sustain.
They also highlighted the difficult operating environment across northern Ghana, where NEDCo serves 64 per cent of the country’s landmass, including multiple regions with low customer density and ageing infrastructure.
They concluded that no private operator would be motivated to serve the region’s vulnerable customer base in a way that ensures public interest, as NEDCo has done over the years.
Under the PSP framework, private operators would receive power at Bulk Supply Points of the National Interconnected Transmission System (NITS) and assume full responsibility for distribution, including technical and commercial operations.
