The Trades Union Congress (TUC)-Ghana has vowed to use all legal means available to block the proposed involvement of private operators in the distribution operations of the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCo).
The union argues that the proposed private sector participation (PSP) arrangement amounts to privatisation of Ghana’s electricity distribution system and raises serious concerns about the country’s control over strategic energy assets.
In a statement issued in September 2026, the TUC rejected the World Bank’s description of the proposed arrangement as being limited to revenue collection, insisting that the model being considered goes significantly beyond that function.
The union said the Transaction Advisor appointed with the backing of the World Bank and the International Monetary Fund (IMF) has proposed a structure under which private operators would take responsibility for the distribution of electricity from Bulk Supply Points to end users.
Under the arrangement, ECG and NEDCo would continue to own the distribution assets, while private companies would lease and operate the networks.
The TUC said the private operators would be responsible for a wide range of functions, including billing, revenue collection, customer management, network maintenance, reduction of technical and commercial losses, as well as other operational activities.
It therefore questioned the World Bank’s assertion that ECG would not be privatised.
“The World Bank is aware of this model. It is shocking for the Bank to say otherwise. And it is even more disingenuous for the Bank to claim that ECG is not going to be privatised,” the union stated.
TUC raises sovereignty concerns
Beyond the technical details of the proposed arrangement, the TUC said its opposition was rooted in concerns over Ghana’s ability to retain control of critical national assets.
“We did not vote for the World Bank to run our country and, for that matter, our energy distribution sector,” the union said.
It argued that decisions regarding strategic energy infrastructure must remain within the authority of the Ghanaian government and should not effectively be outsourced to an international institution or a transaction advisor.
The union also drew parallels with Ghana’s experience under the Structural Adjustment Programme, during which it said more than 100 state-owned enterprises were privatised through reforms supported by the World Bank.
According to the TUC, that process resulted in substantial job losses and negatively affected workers and communities.
It warned that the proposed electricity distribution model could create similar concerns if private operators assume extensive control over the day-to-day operations of ECG and NEDCo.
TUC questions benefits of private participation
The union also challenged the argument that private participation in electricity distribution would necessarily improve access and efficiency.
It cited electricity access figures from selected African countries, arguing that some countries where distribution has been taken over by private companies have recorded lower rural electricity access rates than Ghana and other countries where distribution remains under state control.
The TUC said this raised questions about whether private ownership or operation of distribution networks automatically delivers better outcomes, particularly for underserved rural communities.
It further criticised what it described as the World Bank’s emphasis on distribution losses while calling for a broader examination of the factors contributing to Ghana’s electricity-sector challenges.
Dispute over generation costs
The TUC also turned its attention to Ghana’s Independent Power Producer (IPP) arrangements, arguing that the model promoted in the electricity sector has contributed to high generation costs and significant foreign-exchange exposure.
The union rejected the suggestion that Ghana has no alternative to the IPP model and called for consideration of other approaches to electricity generation and procurement.
“The Bank will have us believe that the IPP model of procuring generation is the only game in town and that Ghana cannot do without it. This is a lie. There are better alternatives,” it stated.
The TUC also referred to the controversy surrounding the previous ASKA Energy Power Purchase Agreement and challenged the World Bank to state its position on the matter.
The union maintained that improving Ghana’s electricity sector requires reforms that protect national interests while addressing operational and financial challenges, rather than transferring significant control of the distribution system to private entities.
It has consequently reaffirmed its opposition to the proposed PSP arrangement, maintaining that it considers private sector participation and privatisation to be effectively the same in this context.
The TUC said it and its affiliates would intensify efforts, including legal action where necessary, to prevent the proposed arrangement from being implemented.
The World Bank had not publicly responded to the TUC’s latest statement at the time of the union’s release, while the government had also not formally stated its position on the TUC’s latest objections.
