Ghana energy sector faces dispute over private sector participation

A dispute has emerged in Ghana regarding the proposed private sector participation (PSP) in the operations of the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCo).

The Trades Union Congress (TUC)-Ghana has rejected the proposal, which is supported by the World Bank and the International Monetary Fund (IMF). The TUC claims the arrangement is a form of privatisation, arguing that the model proposed by the Transaction Advisor would see private operators assume responsibility for distribution from bulk supply points to final customers, including billing, maintenance, and network management. The union warned it would resist any attempt to privatise the electricity distribution sector.

In response, the Energy Ministry has denied that the plan constitutes privatisation. Ministry spokesperson Richmond Rockson stated that the key distinction is ownership, asserting that the government does not intend to transfer ownership of ECG or NEDCo assets to private entities. The Ministry maintains that the PSP model is designed to address structural and financial challenges by increasing private involvement in operations without transferring state ownership.