Gov’t Engages Stakeholders on Power Distribution Reforms

The government has begun high-level consultations with organised labour and key utility stakeholders as part of efforts to reform Ghana’s power distribution sector, amid growing concerns over inefficiencies threatening its sustainability.

Leading the engagement, the Minister for Energy and Green Transition, Dr John Abdulai Jinapor, said the discussions underscore government’s commitment to inclusive dialogue as it considers reforms involving the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCo).

“As part of government’s commitment to continuous engagement with all stakeholders, I engaged the Trades Union Congress (TUC), the Public Utilities Workers’ Union (PUWU), NEDCo, and representatives from various utility institutions on private sector participation in ECG and NEDCo,” the minister stated.

Dr Jinapor emphasised that labour unions and utility workers remain central to electricity delivery and must be involved in conversations about structural changes in the sector. The meeting brought together the TUC, PUWU, management of NEDCo and representatives from allied utility institutions, forming part of a broader strategy to build consensus and transparency around power sector reforms.

According to the minister, discussions were open and evidence-driven, allowing stakeholders to critically assess the state of the power distribution system.

“The engagement was frank, constructive, and driven by data,” he said, noting that attention was focused on operational challenges undermining efficiency and financial stability within ECG and NEDCo.

Dr Jinapor identified billing and revenue collection as major weaknesses in the distribution chain, warning that failure to address them could jeopardise the entire energy value chain.

“What is not in doubt is that there is a major challenge within the distribution chain of the power sector, particularly in the areas of billing and collections,” he stressed.

He explained that inefficiencies in these areas have resulted in revenue leakages, liquidity constraints and rising debt levels, affecting power generators, fuel suppliers and consumers. “If not addressed decisively, this challenge poses a serious risk to the sustainability of the sector,” he cautioned.

While acknowledging labour concerns over private sector participation, particularly regarding job security and public ownership, the minister said government’s approach is aimed at strengthening, not weakening, the sector.

Private sector involvement, he explained, is being considered as one of several tools to improve efficiency and service delivery. “No decisions will be taken without data, stakeholder input and careful consideration of the national interest,” he said.

Dr Jinapor reaffirmed government’s resolve to tackle the sector’s structural problems, describing electricity distribution as too critical to fail. He added that sustained dialogue would continue as reforms progress, with the ultimate goal of securing reliable power supply to support economic growth.