The Institute for Energy Security (IES) has called on government and organised labour to shift from confrontation to constructive engagement over the proposed Private Sector Participation (PSP) in the operations of the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCo).
In a press statement issued in Accra on January 13, 2026, IES said it has closely reviewed recent public discussions, labour actions and official communications following the Ministry of Energy and Green Transition’s release of the PSP Guiding Framework, as well as protests by the Public Utilities Workers Union (PUWU) and statements from the Trades Union Congress (TUC). DOC-20260113-WA0070.
The think tank acknowledged the concerns raised by organised labour, particularly around job security, national interest, transparency and the long-term implications of private sector involvement in a strategic national asset. IES noted that labour groups have also argued that many of ECG’s inefficiencies stem from governance failures, political interference and weak systems across the power value chain rather than worker performance. DOC-20260113-WA0070.
However, the institute cautioned that ECG’s financial and operational challenges remain severe and cannot be ignored. According to the statement, the power distributor is burdened by revenue leakages, technical and commercial losses, and mounting sector debt estimated at over US$1.5 billion, posing risks to Ghana’s energy security, fiscal stability and overall economic performance. DOC-20260113-WA0070.
IES further disclosed that ECG and government still owe Independent Power Producers close to US$725 million, with an additional US$460 million owed to the Ghana Grid Company, underscoring the depth of financial stress in the power sector. DOC-20260113-WA0070.
While supporting government’s decision in principle to explore PSP as a reform option, IES stressed that private sector involvement is not a cure-all. The institute said PSP must be carefully designed, transparently implemented and supported by strong regulation and broad stakeholder engagement to avoid repeating past setbacks and deepening public mistrust. DOC-20260113-WA0070.
To break the current impasse, IES proposed a series of measures, including the establishment of a structured, time-bound tripartite platform involving the Ministry of Energy and Green Transition, organised labour, regulators and independent experts to jointly address concerns and co-design reform pathways. It also recommended a phased and conditional approach to PSP, beginning with pilot interventions in revenue collection and metering, and scaling up only after independently verified performance results. DOC-20260113-WA0070.
The institute further called for clear labour and social safeguards to protect jobs, promote skills transfer and ensure respect for labour rights, alongside greater transparency through the publication of key diagnostic studies and stronger oversight by the Public Utilities Regulatory Commission and Parliament. In parallel, IES urged decisive reforms to depoliticise ECG’s governance and improve accountability across the energy value chain. DOC-20260113-WA0070.
IES acknowledged government’s efforts in developing a more structured and evidence-based PSP framework, including stakeholder consultations and international benchmarking, but warned that technical soundness without social consensus could undermine implementation. DOC-20260113-WA0070.
In conclusion, the institute emphasised that the future of ECG and Ghana’s electricity distribution sector is a shared national responsibility and can only be secured through inclusive dialogue, pragmatic compromise and a strong commitment to protecting the public interest while restoring the sector’s financial and operational viability. DOC-20260113-WA0070.
Story by Doe Benjamin Kofi Lawson