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Tuesday, November 3, 2026

PUWU Rejects ECG and NEDCo Privatisation Plan, Accuses Government of Breaching Trust

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The Public Utilities Workers Union has mounted a strong objection to the government’s decision to appoint a transaction adviser to oversee the proposed participation of private investors in the Electricity Company of Ghana and the Northern Electricity Distribution Company, arguing that the development represents a serious breach of the mutual confidence that has characterised its engagements with the Ministry of Energy and Green Transition.

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In a statement dated August 3, 2026 and signed by its General Secretary, Timothy Nyam, the union expressed disappointment over what it described as the government’s decision to proceed with the privatisation agenda despite its earlier engagement with the ministry and the submission of an alternative proposal.

According to the union, its most recent engagement with the Ministry of Energy and Green Transition involved the presentation of a comprehensive position paper outlining its alternative approach to private sector participation in ECG and NEDCo. PUWU said the document contained detailed recommendations concerning the proposed restructuring of the two electricity distribution companies, yet the ministry had neither acknowledged receipt nor formally responded to the submission.

The union subsequently questioned why government had proceeded to appoint a transaction adviser who, according to PUWU, was already conducting consultations and advancing preparations for the proposed private sector involvement in the two utilities.

PUWU further expressed concern that the government’s intention to proceed with the proposed arrangement had been reinforced in the budget statement presented by the Finance Minister, including the timelines associated with the proposed privatisation of ECG. The union maintained that this decision was taken without adequate consideration of the concerns and recommendations contained in its position paper.

The workers’ organisation said its alternative proposal had been developed after carefully examining the structural and operational difficulties confronting ECG and NEDCo. Among the challenges identified were political interference in managerial and procurement processes, the appointment of individuals without the necessary technical expertise to serve on governing boards, insufficient coordination in the implementation of the Self Help Electrification Programme and financial pressures resulting from foreign exchange losses.

PUWU also cited the recent reclassification of bulk customers as another issue requiring attention, while raising broader concerns about accountability and transparency throughout Ghana’s electricity supply chain.

The union argued that these challenges should not automatically be interpreted as evidence that public ownership of the electricity distribution utilities had failed. Instead, it maintained that the difficulties could be addressed through comprehensive institutional and managerial reforms capable of improving efficiency, strengthening financial performance and ensuring the long term sustainability of ECG and NEDCo.

As part of its proposed solution, PUWU called for the appointment of technically competent boards of directors and managing directors who would operate under clearly established performance targets and measurable responsibilities. The union also advocated the removal of excessive political influence from management structures while demanding stronger accountability across the entire energy value chain.

The union’s opposition to the government’s proposed private sector arrangement is rooted partly in its assessment of previous privatisation initiatives undertaken in Ghana and other African countries. PUWU argued that historical experiences demonstrate that transferring public utilities to private investors under the broader description of private sector participation does not necessarily resolve underlying operational weaknesses.

Instead, the union warned that poorly designed arrangements could create additional difficulties for consumers and the broader economy. It argued that private control of strategic electricity distribution infrastructure could result in increased costs for consumers, restrict access to essential services and create broader implications for national sovereignty, employment, workers’ rights and Ghana’s energy security.

PUWU has therefore called on the government to retain ECG and NEDCo under public ownership and control, insisting that electricity distribution remains a strategic national responsibility that should be managed in a manner that prioritises affordability, equitable access and the long term developmental interests of the country.

According to the union, maintaining public ownership would provide a stronger basis for protecting employment, safeguarding national interests and ensuring that electricity services remain accessible to citizens across different economic and geographic circumstances.

Rather than treating private sector participation as an immediate solution to the difficulties confronting the electricity distribution companies, PUWU is urging the government to pursue a comprehensive reform programme that addresses the structural, managerial and financial weaknesses within ECG and NEDCo.

The union maintains that such an approach would allow the government to improve the performance of the utilities without surrendering ownership or control of what it considers critical national assets.

PUWU has consequently reiterated its firm opposition to any attempt to privatise ECG or NEDCo, whether through a complete transfer of ownership or through arrangements that would result in private interests acquiring significant control over the operations of either institution.

The union further warned that it would not remain passive if the government proceeds with measures designed to transfer ownership or control of the two electricity distribution companies to private interests. PUWU said it would work alongside its affiliates within the Trades Union Congress to employ every legitimate means available to oppose policies that, in its assessment, threaten strategic national assets and the interests of Ghanaian workers.

Despite its emphatic rejection of privatisation, however, PUWU stressed that it remained willing to engage constructively with the government and other relevant stakeholders.

The union said it was prepared to contribute to efforts aimed at restructuring and revitalising ECG, NEDCo and the wider energy sector, provided that such interventions protect the public interest and promote the sustainable development of Ghana’s electricity industry.

The dispute therefore places the government’s proposed private sector participation framework and the position of organised labour on a direct collision course, with PUWU insisting that the problems confronting Ghana’s electricity distribution companies require institutional reform, professional management and stronger accountability rather than the transfer of strategic public assets into private hands.

 

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