The Public Utility Workers Union (PUWU) has called on the government to urgently revisit and renegotiate contracts with Independent Power Producers (IPPs) as part of broader efforts to reduce the high cost of electricity for consumers and stabilize the energy sector.
Speaking on Citi Eyewitness News on Thursday, May 15, PUWU General Secretary, Timothy Nyame, emphasized that the current pricing arrangements with IPPs are a significant driver of financial inefficiencies, which ultimately burden consumers with higher tariffs.
“One of the critical issues we have consistently raised is the high pricing of IPPs. It is a major component of the leakages in the system, yet it receives little public attention,” Nyame stated.
He argued that the current structure, which often ties power costs to foreign currencies, exposes the sector to exchange rate risks, further driving up costs for consumers. This, he said, contrasts sharply with the more favorable IPP pricing seen in some other African countries.
“While much of the public discourse focuses on fuel supply and utility tariffs, we should also be looking at how these IPP contracts are structured. Shifting these contracts to Ghana cedis could reduce the impact of currency fluctuations and stabilize prices for consumers,” he added.
Nyame further noted that addressing these pricing inefficiencies could reduce financial strain on the government, improve the financial sustainability of state power utilities, and provide a more stable business environment for industries reliant on affordable and reliable electricity.
He called on policymakers to prioritize this issue, arguing that a more cost-effective IPP pricing model would ultimately benefit both consumers and the broader economy.
