ECG, NEDCo Revenue Gains Undermine Case for Private Sector Participation – TUC, PUWU
The strong financial turnaround recorded by the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCo) has weakened the case for private sector involvement in their operations, according to organised labour.
The Trades Union Congress (TUC) and the Public Utility Workers’ Union (PUWU) say the sharp improvement in revenue performance shows the two power distributors can remain viable under state ownership, provided internal management reforms are sustained.
Speaking at a joint press briefing in Accra, TUC Secretary General, Joshua Ansah, said the ongoing Turnaround Programme had yielded measurable gains and cautioned against renewed efforts to introduce private sector participation or privatisation in the distribution segment of the power sector.
He disclosed that ECG’s monthly revenue collections had increased from about GH¢900 million to almost GH¢1.7 billion within a six-month period, representing an improvement of roughly 90 per cent.
Mr Ansah also noted that NEDCo had achieved an eight-percentage-point reduction in technical and commercial losses, describing the development as a clear indication of operational progress.
According to him, the performance data demonstrates that with effective leadership, strengthened systems and adequate technical support, the two utilities are capable of operating sustainably without private operators.
The unions further raised concerns over a recent proposal submitted to the Ministry of Energy that reportedly seeks to lease electricity distribution networks to private companies.
“The claim that the private sector is inherently more efficient has been contradicted by the evidence before us,” Mr Ansah said. “If revenue can nearly double under public management in less than a year, there is no justification for transferring strategic national assets to private interests whose primary motivation is profit rather than service delivery.”
He added that the improved revenue performance had also enhanced liquidity across the broader energy sector, easing some of the long-standing financial pressures within the industry.
