The government’s next major decision on private-sector participation in Ghana’s electricity distribution system is expected to become clearer in October, when a transaction advisor engaged to examine the proposed arrangement submits its findings, the Ministry of Energy and Green Transition has disclosed.
The report, expected in the first week of October 2026, will assess the proposed role of private-sector operators in the Electricity Company of Ghana (ECG) and provide recommendations for government consideration.
However, the eventual structure of the arrangement remains unsettled, with questions still surrounding whether private participation will extend beyond billing and revenue collection into other parts of ECG’s distribution operations.
The uncertainty is significant because Ghana’s electricity-sector financing problem is not simply a question of how much electricity ECG sells.
It is also tied to how effectively electricity supplied to consumers is converted into cash, how much revenue is lost within the distribution system and whether the resulting cash flows are sufficient to meet obligations to power generators.
October Report Could Define Scope Of Private Participation
Spokesperson and Head of Communications at the Ministry of Energy and Green Transition, Richmond Rockson, said the transaction advisor’s work is intended to provide an independent assessment before government determines the next steps.
He indicated that the advisor is expected to present its initial findings by the latest in the first week of October, after which the recommendations would be subjected to further consideration and stakeholder engagement.
“Whatever the transaction advisor advises, it’s an advice to government. We will not be guided by it.”
Dr Kwabena Nyarko Otoo, Deputy Secretary-General, TUC
Dr Otoo’s position highlights one of the central issues surrounding the process: the advisor’s report will inform government’s decision but will not, by itself, determine the final model for ECG.
That distinction matters because the government has already received Cabinet approval for private-sector participation, but the approval does not amount to a final decision to transfer control of ECG’s distribution network to private operators.
According to Mr Rockson, the Cabinet approval granted in April 2025 was specifically focused on billing and revenue collection.
Government has not yet determined whether the eventual arrangement will also encompass the bulk supply point, where electricity supplied through the national transmission system is handed over for distribution by ECG.
That leaves open a much broader question about where private-sector involvement would begin and end.
If the intervention is restricted primarily to billing, metering and revenue mobilisation, the objective would be to improve the conversion of electricity consumption into actual cash receipts.
A broader concession or operational arrangement, however, could potentially place private operators much closer to the core management of ECG’s distribution system.
The October report could therefore become an important dividing line between these two approaches.
Revenue Recovery Remains At Heart Of Crisis
The government’s argument for examining private-sector participation is rooted in the financial pressure running through the electricity value chain.
Mr Rockson said the government spends an average of about US$1.5 billion annually to cover shortfalls in the energy sector, demonstrating the extent to which weaknesses within the power market continue to translate into pressure on public finances.
At the distribution end of the chain, he cited fluctuations in ECG’s revenue collection performance.
Collection improved from about 48% previously to 51% in January 2026, before rising to 57% in February, 70% in March and 71% in April. It subsequently dropped to 58% in May before recovering to approximately 70% in June.
The figures point to a system capable of significant improvement but one that has yet to establish consistent collection performance.
For the broader power sector, that inconsistency is consequential.
Electricity generators require payment for power supplied, while ECG must collect sufficient revenue from customers to support payments through the electricity value chain.
Where the cash collected falls below the cost of electricity purchased, the gap ultimately becomes a financing requirement.
Mr Rockson said ECG’s revenue shortfall in 2025 amounted to GH¢9.2 billion in uncollected revenue, contributing to difficulties in meeting obligations to Independent Power Producers (IPPs), as well as the Volta River Authority and Bui Power Authority.
The problem therefore extends beyond ECG’s balance sheet.
Persistent revenue gaps can create arrears between distributors and generators, weaken the financial position of power-sector institutions and increase the extent to which government must intervene with scarce public resources.
This is why improving collections can have an effect far beyond ECG itself.
The Bigger Question Is Distribution Efficiency
Yet the figures also raise a more difficult policy question: how much of Ghana’s electricity-sector deficit can actually be solved through improved revenue collection?
Private participation in billing could potentially address some of the leakage between electricity supplied and revenue received.
Better metering, stronger commercial systems, improved customer-account management and tighter enforcement could increase the amount of electricity consumption translated into revenue.
But collection efficiency is only one component of ECG’s financial challenge.
The distribution utility operates within a system affected by technical losses, commercial losses, infrastructure constraints, operational expenditure and the cost of electricity purchased from generators.
Consequently, improving the collection side without addressing the underlying cost and efficiency structure could produce only a partial solution.
This is particularly relevant given the government’s disclosure that energy-sector shortfalls require around US$1.5 billion annually to bridge.
The October assessment will therefore be watched not merely for whether it recommends private participation, but for what problem it believes private capital and expertise should solve.
If the fundamental objective is revenue mobilisation, the model could remain relatively targeted.
If the analysis points to deeper operational inefficiencies, government could face pressure to consider a more extensive private-sector role.
Labour Raises Questions Over Consultation
The process has also attracted concern from organised labour.
Dr Kwabena Nyarko Otoo, Deputy Secretary-General of the Trades Union Congress (TUC), said organised labour was not consulted on the appointment of the transaction advisor or the terms of reference for the assignment.
His objection introduces a second layer to the debate: the question of institutional and stakeholder ownership of reforms that could affect one of Ghana’s most strategically important public utilities.
“We will not be guided by it.” Dr Kwabena Nyarko Otoo, Deputy Secretary-General, TUC
For organised labour, the transaction advisor’s recommendations are therefore unlikely to settle the debate.
Government would still have to build political and stakeholder consensus around whatever model emerges.
That could become particularly important if the recommendations go beyond billing and collections and touch the management or control of electricity distribution assets.
ECG is not simply another state-owned company.
It sits at the point where electricity generated by Ghana’s power producers ultimately reaches households, businesses and industries.
Decisions affecting its operational structure therefore have implications for electricity affordability, service quality, investment, employment and the financial sustainability of the entire power market.
ECG’s Improving Numbers Add Complexity
The timing of the transaction advisor’s work is also notable because ECG has shown signs of financial improvement.
The utility reported that its revenue increased to GH¢22.1 billion in 2025, while its after-tax loss narrowed from GH¢8.26 billion in 2024 to GH¢2.52 billion.
Those improvements do not eliminate the structural challenges facing the utility, but they complicate the argument that private participation should be treated as the only route to better performance.
The central policy question consequently shifts from whether ECG can improve to how those improvements can be made durable.
The government could argue that private-sector expertise is necessary to accelerate the gains, particularly in areas such as billing, metering, collection and commercial management.
Organised labour, meanwhile, may argue that improvements already being recorded demonstrate the potential for internal reform without transferring significant control to private operators.
The transaction advisor’s report will have to navigate this tension.
It will also have to consider the difference between increasing revenue and improving the economics of electricity distribution.
A utility can collect more effectively and still face financial pressure if its underlying costs remain too high.
For Ghana, that distinction is crucial.
October Decision Comes With Wider Energy Stakes
The government’s eventual decision on ECG will have consequences beyond the utility itself.
A financially stronger distributor should be better positioned to meet obligations to generators, reducing the accumulation of arrears across the electricity market.
Greater payment certainty could, in turn, strengthen the financial position of generation companies and reduce the frequency with which government is required to intervene.
Conversely, a private-sector arrangement that fails to address the deeper causes of the sector’s financing gap could simply move the problem from one part of the value chain to another.
The October report will therefore be an important test of how government intends to approach Ghana’s electricity-sector reforms: whether through targeted commercial improvements, a broader restructuring of distribution operations, or a combination of public-sector reforms and private-sector expertise.
For now, the scope remains open.
What is clear is that the government is seeking a model capable of improving the flow of money through the electricity market while reducing the burden that persistent energy-sector shortfalls place on public finances.
The transaction advisor’s recommendations are expected to provide the next major piece of that puzzle.
But the final decision will ultimately rest with government, and will determine whether private-sector participation in ECG becomes primarily a revenue-collection intervention or the beginning of a much broader transformation of Ghana’s electricity distribution system.
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