The Government of Ghana is facing intensified opposition from organised labour over its plans to privatise the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCo), following claims of a dramatic turnaround in ECG’s financial performance.
At the centre of the debate is a reported surge in ECG’s revenue collections, which the Trade Union Congress (TUC) says proves that public ownership, not privatisation, is the solution to the challenges confronting the power distributor.
However, policy analyst Alfred Appiah has questioned the government’s interpretation of the figures, warning that improved compliance should not be confused with genuine efficiency gains.
Commenting on the controversy, Mr. Appiah said the unions are relying on what he described as an inaccurate framing of ECG’s revenue performance by government.
According to him, ECG had long been generating more revenue than it declared under the Cash Waterfall Mechanism, but weak compliance meant much of that income was not properly accounted for.
“The unions are using the government’s inaccurate interpretation of ECG’s revenues to push their case.
“We already knew ECG was generating more revenue than it was declaring under the cash waterfall mechanism. What has changed is improved compliance with the cash waterfall mechanism.”
Alfred Appiah, Policy Analyst
Mr. Appiah cited PwC data showing that ECG’s revenues were above GHS1 billion in most months of 2024.
He explained that revenue growth from the end of December, when collections stood at about GHS1.52 billion, to the recently reported GHS1.7 billion represents roughly a 12 percent increase, not the nearly 90 percent growth being suggested.
“Government instead presented the improved compliance under the CWM as nearly a 90 percent increase in revenue. Now the unions are cooking with that.”
Alfred Appiah, Policy Analyst
Efficiency Still an Open Question
While acknowledging improvements in reported revenue flows, Mr. Appiah cautioned that revenue growth alone does not provide a complete picture of ECG’s performance.
He stressed that without data on operational efficiency, it is difficult to assess whether the utility is truly turning a corner.
“Still, we have not seen any data on actual efficiency measures,” he said, noting that revenue increases can result from higher power volumes sold or tariff adjustments rather than improved management.
According to him, the key indicators of performance are distribution losses and collection losses, which show how much power ECG is unable to sell and how much revenue it is unable to collect from power sold.
He expressed concern that such data has not been made public in recent months. “PURC used to publish quarterly data on these, but it has not released any since Q2 2024,” he added.
Unions Credit Turnaround Programme
The TUC, however, insists that ECG’s recent performance demonstrates that privatisation is unnecessary. The unions say a six-month turnaround programme implemented between July and December 2025 has fundamentally transformed the utility’s financial position.
Reading a statement on behalf of organised labour, TUC Secretary General Jasuah Ansah said verified performance data shows a sharp rise in monthly revenue collections.
“Verified performance data indicates that ECG’s average monthly revenue collection increased from approximately GHS900 million to a record GHS1.75 billion, representing more than a 90 percent increase.”
TUC Secretary General Jasuah Ansah
According to the unions, the improved cash flow has had positive spillover effects across the power sector, particularly in ECG’s ability to meet its obligations to independent power producers.
The TUC says the revenue turnaround has helped ensure regular payments to power generators, easing tensions that previously threatened plant shutdowns.
“This remarkable improvement has ensured that power generators are now paid regularly, avoiding threats or shutdowns of production plants.”
TUC Secretary General Jasuah Ansah
They argue that the improved financial discipline has contributed to unusually stable power supply in recent months, challenging long-held claims that ECG is incapable of performing effectively under public ownership.
For organised labour, the recent stability in electricity supply is evidence that the utility can deliver results when workers, management and government collaborate effectively.
Firm Resistance to Privatisation Plans
On the back of these gains, the TUC has vowed to resist any attempt to privatise ECG or NEDCo, describing such plans as unjustified and potentially harmful.
The unions argue that recent progress achieved through cooperation undermines the rationale for transferring control of strategic national assets to private interests.
“The collaboration among the union, management and government is winning the battle.
“There is no need to change the winning team.”
TUC Secretary General Jasuah Ansah
The TUC accused government of ignoring viable alternatives to privatisation in favour of what it described as an ideological agenda.
“Government’s insistence on pursuing the privatization agenda, even after demonstrably effective management-union solutions, remains deeply troubling.”
TUC Secretary General Jasuah Ansah
While the unions say they remain open to engagement, they have made it clear that they will oppose any move to privatise the utilities. Analysts, meanwhile, caution that without transparent data on losses and efficiency, it may be premature to declare victory.
As the debate intensifies, the future of ECG and NEDCo is shaping up as a major flashpoint in Ghana’s broader energy sector reforms, pitting labour’s confidence in public-sector turnaround against government’s push for structural change.
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