Joshua Ansah, the Secretary-General of the Trades Union Congress (TUC), has voiced strong opposition against the privatisation of the Electricity Company of Ghana (ECG). As calls for privatisation intensify, Ansah insists that this move is not the optimal solution for improving ECG’s operations.
In an exclusive interview with [3news.com](https://www.3news.com), Ansah explained that past experiences with privatised companies in the country have not led to the anticipated growth. “Our stance on privatisation has always been negative,” he asserted, citing numerous cases where privatised entities failed to deliver favorable outcomes.
Ansah believes that the ECG can thrive without privatisation if government interference ceases. He expressed concerns over government-led procurement processes, like the acquisition of meters, which hamper the ECG’s ability to function independently. “If these interventions stop, ECG can manage effectively while continuing to provide essential services to Ghanaians,” Ansah stated.
Under President Mahama’s administration, efforts were made to explore private sector partnerships aimed at boosting revenue collection efficiency. This initiative was part of a broader strategy to overcome challenges like financial mismanagement and inadequate service delivery within the energy sector, which have significant implications for the nation.
In recent financial evaluations, ECG’s losses reached GH¢10.21 billion in 2022, a stark increase from the GH¢1.91 billion loss in 2021. The Auditor General’s Report attributes this over 433% rise primarily to currency exchange losses due to cedi depreciation and higher power distribution costs. Despite a 24.1% income increase to GH¢15.03 billion in 2022 from government grants and internally generated funds, expenditure surged by 80% to GH¢25.23 billion due to elevated operational and transmission costs.
Source: https://www.ghanaweb.com
