The Ministry of Energy and Green Transition has moved to calm rising tensions following protests by the Public Utilities Workers’ Union (PUWU) over the selection of a Transaction Advisor for the Private Sector Participation (PSP) arrangement at the Electricity Company of Ghana (ECG).

In a press release signed by its Spokesperson and Head of Communication, Richmond Rockson, Esq., the Ministry said it had taken note of concerns raised by PUWU and subsequent actions opposing the move. The Ministry stressed that the current process is part of a broader reform agenda approved at the highest level of government and does not amount to the sale of ECG.

“The Ministry of Energy and Green Transition has taken note of a press release issued by the Public Utilities Workers’ Union (PUWU) and subsequent actions protesting the selection of a Transaction Advisor for the Private Sector Participation in the Electricity Company of Ghana.”
Ministry of Energy and Green Transition

According to the Ministry, the decision to pursue Private Sector Participation in ECG was approved by Cabinet in April 2025 under the leadership of President John Dramani Mahama.

The PSP initiative forms part of a wider strategy aimed at addressing longstanding inefficiencies within the power distribution company.

The Ministry explained that the reforms are designed to improve billing and revenue collection, enhance service delivery, and reduce aggregate technical and commercial losses that continue to weigh down ECG’s operations. These losses, officials say, have contributed significantly to the financial strain facing the power sector.

“Cabinet… approved Private Sector Participation in ECG as part of a broader reform agenda aimed at improving billing and revenue collection, enhancing service delivery, and reducing aggregate technical and commercial losses within the Company.”
Ministry of Energy and Green Transition

Persistent Challenges Despite Recent Gains

While acknowledging that ECG has recorded notable improvements in performance since January 2025, the Ministry cautioned that these gains alone are not sufficient to secure the company’s long-term sustainability. Structural and financial challenges, it said, remain deeply rooted.

Energy analysts have long pointed to ECG’s revenue shortfalls and system losses as key contributors to Ghana’s energy sector debt, making reform a recurring policy priority across successive administrations.

A central concern raised by PUWU has been the fear that the PSP initiative could lead to the sale or divestiture of ECG.

“The Ministry emphasizes unequivocally that Government of Ghana does not intend to, and will not, sell ECG,” the release stressed. It clarified that the approved framework focuses on leveraging private sector expertise rather than transferring ownership.

“The approved Private Sector Participation framework is not a sale or divestiture. Rather, it involves the strategic deployment of private sector expertise… to support and improve specific operational areas of ECG.”
Ministry of Energy and Green Transition

Engagement with PUWU to Continue

The Ministry also sought to reassure workers and union leaders of its commitment to dialogue and transparency. It noted that the sector minister, Dr. John Abdulai Jinapor, has consistently engaged PUWU and other stakeholders throughout the reform process.

“The Ministry… has consistently demonstrated its commitment to PUWU and to broad stakeholder engagement,” the statement said, adding that discussions with the union will continue to address concerns and resolve outstanding issues.

This assurance comes amid calls from labour leaders for greater consultation and safeguards to protect workers’ jobs and conditions under any private sector arrangement.

As tensions linger, the Ministry urged all parties to exercise restraint and allow ongoing engagements to proceed in good faith. It emphasised that the selection of a transaction advisor is merely a technical step to properly structure the PSP framework.

“The selection of a transaction advisor is a technical and procedural step… and does not in any way constitute or imply an outright sale of ECG.”
Ministry of Energy and Green Transition

Reaffirming government’s position, the release concluded that authorities remain committed to protecting workers’ interests, strengthening ECG, and ensuring a reliable, efficient and sustainable power supply for all Ghanaians.

As debates over power sector reforms continue, the Ministry’s clarification is expected to shape further discussions between government, labour unions and other stakeholders on the future of ECG and Ghana’s energy sector.