ECG remains a critical national asset, says PUWU rejects privatisation move

The Public Utility Workers’ Union (PUWU) of TUC-Ghana opposes the government's plan. The plan involves private sector participation in the Electricity Company of Ghana (ECG) and Northern Electricity Distribution Company (NEDCo). PUWU warns this could worsen inefficiencies and threaten energy security.

At a press conference in Accra on April 10, the union criticized the proposal. They believe it shows a lack of understanding of energy sector challenges. This press conference followed an interview with the Minister for Energy and Green Transition. The minister sought public support for ECG's retail privatization.

PUWU argues that focusing on ECG’s retail issues is misleading. They acknowledge inefficiencies exist but say they are not limited to retail operations. The union claims these challenges stem from political interference, poor governance, and flawed procurement processes.

Key issues include financial burdens from take-or-pay contracts and metering problems. They also highlighted electricity pricing in foreign currency and frequent leadership changes at ECG. PUWU noted that ECG has had seven Managing Directors in 15 years, disrupting long-term plans.

The union criticized appointing board members without merit. Political influence in procurement has led to substandard equipment supply. PUWU proposed alternative solutions to improve operations at ECG.

They suggested forming a stakeholder board with civil society involvement. Setting clear performance targets for ECG leadership was also recommended. Strengthening the Energy Ministry's role is crucial, along with allowing ECG access to capital market funding.

Additionally, they called for renegotiating power generation contracts in cedis instead of dollars. Reforms to the SHEP program should give ECG a more direct role as well. PUWU emphasized that ECG is vital for Ghana’s economic development and national sovereignty.

They warned that privatization has failed in other African countries, leading to job losses and higher tariffs. The TUC and its affiliates will resist any attempt by the government to privatize ECG or NEDCo partially or fully. PUWU reaffirmed their commitment to a resolution passed at TUC’s 10th Quadrennial Delegates Congress in 2016.