PUWU opposes Mahama’s privatization of ECG
The Public Utility Workers Union (PUWU) has strongly opposed the government’s plans to privatize or diversify the Electricity Company of Ghana (ECG), warning that such a move could compromise public interest. The union stressed that prioritizing profit over equitable access to electricity would be detrimental to national development.
In a statement, PUWU emphasized its commitment to fair and affordable electricity services, saying, “We cannot support any initiative that prioritizes profits over equitable service delivery.”
An energy consultant has also cautioned against privatization, highlighting its mixed results in other African countries. He noted that in Nigeria, full privatization of the electricity distribution sector has failed to meet expectations, while in Uganda, private operators focused only on profitable areas, leaving underserved regions to the government.
The consultant further attributed ECG’s challenges to systemic issues such as low tariffs, inefficiencies, and political interference. “Tariffs are often below the cost of production, and exchange rate fluctuations create financial losses before revenue is even collected,” he explained. He warned that privatization could lead to increased costs for consumers, especially in rural and low-income areas, if not carefully planned.
Dr. Elikplim Kwabla Apetorgbor, CEO of Independent Power Generators, Ghana, pointed to the failed Power Distribution Services (PDS) concession as a cautionary example. He revealed that ECG’s financial performance deteriorated significantly under PDS, with debts ballooning to $1.8 billion.
Despite these concerns, President John Dramani Mahama recently suggested privatization as a solution to ECG’s inefficiencies during a meeting with the World Bank. Following this, Energy Minister John Jinapor announced the formation of a seven-member committee to develop a privatization plan within a month.
Jinapor clarified that the government does not intend to sell ECG outright but aims to involve the private sector responsibly and transparently. Critics, however, argue that any privatization effort must ensure the protection of public interests and the inclusion of vulnerable groups.
Stakeholders have proposed alternatives, such as improving ECG’s governance structure and reducing electricity losses, as more sustainable solutions to the challenges facing Ghana’s energy sector.
By: Linda Akite
About The Author
