The Energy Ministry has rejected claims that the government’s proposed private sector participation (PSP) in the Electricity Company of Ghana (ECG) amounts to privatisation.
Speaking in an interview on Joy FM’s Top Story on Tuesday, September 8, the spokesperson and Head of Communications at the Energy Ministry, Richmond Rockson, said the key distinction lies in ownership.
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He explained that privatisation involves the transfer of ownership, while the proposed PSP arrangement does not involve transferring ownership of ECG or the Northern Electricity Distribution Company (NEDCo) to private operators.
“It’s not semantics. When you talk about privatization, privatization involves transfer of ownership. When it comes to PSP, it is not necessarily a transfer of ownership,” Mr. Rockson said.
He said government, with Cabinet approval in April 2025, had made it clear that it did not intend to transfer ownership of ECG or NEDCo to private operators.
According to Mr. Rockson, the proposed arrangement is intended to introduce greater private sector involvement in the operations of the two state-owned electricity distributors without transferring ownership of their assets.
He noted that private sector participation already exists in some areas of ECG and NEDCo’s operations, including electricity sales and, in some cases, revenue collection.
“What it wants to do is to bring in the private sector, which already there’s some element of private sector participation in ECG and even NEDCo already when it comes to the sale of electricity, and even in some cases when it comes to collection,” he explained.
The comments come after the Trades Union Congress (TUC) insisted that PSP and privatisation are essentially the same and raised concerns about the implications of the proposed arrangement for ECG.
The Energy Ministry, however, maintains that government’s focus is on addressing structural and financial challenges within the electricity distribution sector.
Mr. Rockson cited reforms undertaken since government assumed office in January 2025, including changes to ECG’s revenue management system.
He said ECG previously operated almost 50 bank accounts, making it difficult to effectively monitor revenues collected by the company.
“One of the first things the minister did was to collapse all these accounts to have a single holding account to ensure that the monies collected are according to those accounts,” he said.
He explained that the funds subsequently feed into the cash waterfall mechanism, through which revenues are distributed to various stakeholders in the power sector.
According to Mr. Rockson, the reforms have contributed to improvements in revenue management and helped reduce concerns over payments to Independent Power Producers (IPPs) and other service providers.
“You would attest to the fact that for a very long time, we haven’t heard the IPPs or any service provider in the power sector threatening that we are going to stop generation because we have not been paid,” he said.
He attributed this partly to what he described as prudent management of the cash waterfall mechanism.
Despite the improvements, Mr. Rockson acknowledged that ECG and NEDCo continue to face revenue collection challenges.
He cited data from the Public Utilities Regulatory Commission (PURC), which he said indicates that ECG is expected to collect about GH¢2.5 billion each month, while NEDCo is expected to collect approximately GH¢400 million.
“As we speak, even though we’ve seen improvement as a result of the reforms and of course as a result of the work ethic of ECG, which we give credit to, we still have serious deficits each month,” he said.
He added that ECG’s monthly collections have in some instances been around GH¢1.92 billion to GH¢2.1 billion, leaving a significant gap between expected and actual revenue.
The Energy Ministry therefore maintains that while reforms are yielding results, structural challenges within the electricity distribution sector remain and require further intervention.
