The government’s proposal to merge the Northern Electricity Distribution Company (NEDCo) with the Electricity Company of Ghana (ECG) into the Ghana Power Distribution Authority has sparked significant resistance from the workers of the Volta River Authority (VRA) and NEDCo.
In a petition submitted to government officials, the workers argue that the merger will disproportionately harm underserved regions in northern Ghana and pave the way for the privatization of essential public services, which could lead to increased electricity costs.
Since NEDCo’s establishment in 1987, it has been a key player in bringing electricity to northern Ghana—a region historically underserved by the national power grid. With consistent financial and logistical support from the VRA, NEDCo has been able to maintain a reliable electricity supply to these often-overlooked areas.
The workers argue that the proposed merger with ECG, which operates in a vastly different socio-economic landscape, could disrupt this critical service.
The petition highlights concerns that ECG’s financial instability, particularly its substantial debt to the VRA, would exacerbate the challenges facing power distribution in northern Ghana. The workers fear that the northern regions, which are less profitable due to lower demand, would suffer further neglect under the new Ghana Power Distribution Authority.
The proposed NEDCo-ECG merger, like other elements of the government’s restructuring plan, is seen by workers as a thinly veiled attempt at privatizing essential public assets.
The petition references the failed Power Distribution Services (PDS) arrangement, a previous attempt to introduce private sector management into the energy sector, which collapsed amidst allegations of corruption and mismanagement. The workers also noted that this history shows the risks of privatizing public services.
The petition further warns that merging NEDCo and ECG under a privatized entity would lead to several negative outcomes, including higher electricity tariffs, widespread job losses, and reduced access to electricity for rural and low-income communities.
“We’ve seen this playbook before,” the workers caution, emphasizing that the proposed merger prioritizes profit over equitable service provision, putting the needs of underserved regions at risk.
In their petition, VRA and NEDCo workers urge the government to reconsider the merger, warning that it could deepen inequalities in energy access and create new financial burdens for Ghanaians, especially those in the country’s northern regions.
