The leadership of the Northern Electricity Distribution Company Staff Association has raised strong objections to government’s proposed Private Sector Participation (PSP) arrangement, insisting that the reform amounts to a full-scale takeover rather than the limited partnership being publicly communicated.
The Association’s Chairman, William Asare, alleged that the guiding framework being implemented by the PSP Secretariat contradicts assurances previously given by President John Dramani Mahama that state power utilities would retain control of core operations.
Speaking on Citi Eyewitness News on Thursday, May 21, Mr Asare said documents submitted to the Ministry of Energy suggest that private operators will assume control of the entire distribution chain rather than restricting their role to billing and revenue collection.
He argued that the official framework extends private sector involvement beyond commercial functions into technical and operational control, beginning from the bulk supply point — which he described as the core starting point of NEDCo’s operations.
“If the PSP is taking over from there and is responsible for all our operations, technical and commercial, then it is not participation, it is complete takeover,” he stated.
Mr Asare further questioned the future role of NEDCo staff under the arrangement, warning that workers risk being reduced to passive asset custodians with no meaningful operational responsibilities.
He said the document suggests that NEDCo would remain only as an asset-holding entity while private operators handle all operational functions across the distribution system.
According to him, this raises serious concerns about job security for more than 1,300 workers, who staff groups fear could be rendered redundant or sidelined.
The staff leader also defended NEDCo’s operational performance, insisting the company has made measurable improvements in reducing system losses across most of its operational regions.
He cited compliance with regulatory benchmarks set by the Public Utilities Regulatory Commission (PURC), noting that losses have been reduced in several areas including Sunyani, Techiman, Upper West and parts of the Northern Region.
He acknowledged that challenges remain in Tamale but said losses there had already been reduced significantly from 45 percent to about 37 percent through internal reforms and improved management practices.
Mr Asare stressed that these gains demonstrate that NEDCo is capable of improving efficiency without external takeover of its operations.
The PSP proposal, however, has been strongly defended by government as a reform aimed at improving efficiency, reducing distribution losses and strengthening the sustainability of the power sector.
But resistance is mounting among labour groups within both NEDCo and the Volta River Authority (VRA), who argue that the policy risks becoming disguised privatisation of Ghana’s electricity distribution system.
As debate intensifies, stakeholders remain divided over whether the PSP model represents genuine reform or a structural transfer of control of critical national energy assets.
