The recent financial turnaround recorded by the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCo) has weakened the case for private sector participation in their operations, according to two major labour unions.
The Trades Union Congress (TUC) and the Public Utility Workers’ Union (PUWU) say the sharp increase in revenue demonstrates that the power distributors can be financially sustainable under effective public-sector management.
Addressing a joint press briefing in Accra, TUC Secretary General, Mr. Joshua Ansah, said the ongoing “Turnaround Programme” had produced measurable gains, cautioning that any move toward privatisation or private sector involvement would undermine the progress made.
He disclosed that ECG’s monthly revenue collections have surged from about GH¢900 million to nearly GH¢1.7 billion within six months — an increase of roughly 90 per cent.
Mr. Ansah also revealed that NEDCo has achieved an eight-percentage-point reduction in technical and commercial losses, further strengthening the case for improved internal management rather than external takeover.
According to the unions, the performance indicators show that with adequate technical support, accountability, and leadership, the utilities can operate efficiently and sustainably.
They expressed strong reservations about a recent framework submitted to the Ministry of Energy proposing the leasing of electricity distribution networks to private operators.
“The long-held claim that the private sector is inherently more efficient has been disproved by current data,” Mr. Ansah said. “If state-managed utilities can nearly double revenue in less than a year, why hand over strategic national assets to private interests whose primary motive is profit?”
He added that the improved revenue performance has also enhanced liquidity across the energy sector, contributing to greater financial stability.
