The Public Utility Workers Union (PUWU) has called on the government to urgently revisit and renegotiate existing contracts with Independent Power Producers (IPPs), citing current pricing arrangements as a major contributor to financial inefficiencies within Ghana’s energy sector.
In an interview with Citi FM on Thursday, 15th May, PUWU General Secretary, Timothy Nyame, voiced concern over what he described as a lack of attention to the cost implications of IPP contracts, which he believes are a significant source of revenue leakage.
“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 questioned.
He observed that while public discourse tends to focus on issues such as utility tariffs and fuel supply, insufficient attention is given to the high cost of electricity procured from IPPs—especially when compared to similar arrangements in other African countries.
“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 added.
Mr Nyame further highlighted the negative impact of exchange rate fluctuations on power pricing, urging a transition to contracts denominated in Ghana cedis as a way of aligning with domestic economic realities.
“Looking at the pricing across Africa—how much some of the IPPs are charging compared with Ghana. Also, changing the pricing to Ghana cedi. We are not looking at that,” he said.
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