Renegotiate IPP contracts to stop revenue leakages – PUWU to govt

The Public Utility Workers Union (PUWU) is urging the government to renegotiate contracts with Independent Power Producers (IPPs). They believe current pricing arrangements cause financial inefficiencies in the energy sector.

On May 15, PUWU General Secretary Timothy Nyame spoke on Citi Eyewitness News. He expressed concern about the cost implications of IPP contracts. Nyame stated these contracts lead to significant revenue leakage.

He questioned whether the government has tried to renegotiate IPP contracts. Public discussions often focus on utility tariffs and fuel supply. However, little attention is given to high electricity costs from IPPs compared to other African countries.

Nyame emphasized that IPP pricing contributes to revenue leakages. He noted that no one is discussing the need for renegotiation. Additionally, he raised concerns about exchange rate fluctuations affecting power pricing.

Nyame called for a shift to contracts in Ghana cedis. This change would better reflect local economic conditions. He highlighted how Ghana's IPP charges compare unfavorably with those in Africa.