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The Public Utility Workers Union (PUWU) is calling on the government to urgently review and renegotiate its agreements with Independent Power Producers (IPPs), citing the current pricing arrangements as a major source of financial strain within Ghana’s energy sector.
Speaking in an interview on Citi Eyewitness News on Thursday, May 15, PUWU General Secretary Timothy Nyame expressed deep concern over what he sees as a lack of attention to the cost burden created by these contracts. He argued that the pricing structure of electricity generated by IPPs is significantly contributing to inefficiencies and revenue losses in the power industry.
“There are certain things that we are also raising about the pricing of IPPs… has the government taken the pain to renegotiate the IPP contract with them?” Nyame asked, stressing the need for a more deliberate and transparent approach to managing these agreements.
Nyame pointed out that public discourse often focuses on issues like utility tariffs and fuel availability, yet fails to address the higher cost of electricity from IPPs—especially when compared with other African nations.
“These are some of the things that we are mentioning—that the pricing of the IPP is part of the leakages that they have to plug. Nobody is speaking about that. Nobody sees that IPPs should be renegotiated,” he emphasized.
He also highlighted the role of exchange rate volatility in further complicating power pricing. Nyame suggested that switching to contracts denominated in Ghana cedis could help reflect the true state of the local economy and reduce pricing pressures.
“Looking at the pricing across Africa—how much some of the IPPs are charging compared with Ghana. Also [changing] the pricing into Ghana cedi. We are not looking at that,” he said.
PUWU believes that addressing these pricing issues is essential to restoring financial stability in the energy sector and ensuring affordable power for Ghanaians.
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