The Public Utility Workers Union (PUWU) has called on the government to promptly reassess and renegotiate agreements with Independent Power Producers (IPPs), contending that the existing pricing structures are a primary factor contributing to financial inefficiencies within the energy sector.
In an interview on Thursday, May 15, PUWU General Secretary Timothy Nyame voiced his concerns regarding what he perceives as a neglect of the cost implications associated with IPP contracts, which he claims have emerged as a considerable source of revenue loss.
“We are raising several issues regarding the pricing of IPPs… has the government made an effort to renegotiate the IPP contracts?” Nyame inquired.
He observed that public discourse frequently focuses on utility tariffs and fuel supply, yet there is insufficient attention given to the excessive costs of electricity from Independent Power Producers (IPPs), particularly in comparison to pricing frameworks in other African nations.
“These are some of the issues we are highlighting—that the pricing of IPPs constitutes a significant leakage that needs to be addressed. This topic is rarely discussed, and there is a lack of recognition that IPP contracts should be renegotiated,” he remarked.
Nyame also expressed concerns regarding the effects of exchange rate volatility on electricity pricing and advocated for a shift to contracts denominated in Ghanaian cedis to more accurately reflect local economic realities. “When examining the pricing across Africa—considering how much some IPPs charge in relation to Ghana.
Additionally, we should consider converting pricing into Ghana cedis. This aspect is often overlooked,” he stated.
