Senior Research and Policy Analyst at the Institute for Energy Security (IES), Smith Prosper Boahene, says increasing electricity tariffs alone may not resolve the operational challenges confronting the Electricity Company of Ghana (ECG).His comments come amid opposition from the Trades Union Congress (TUC) to proposed private sector participation (PSP) in the operations of ECG and the Northern Electricity Distribution Company (NEDCo).TUC has raised concerns about the proposed arrangement, including its potential impact on consumers, workers and electricity tariffs, while questioning aspects of the model being considered for private sector participation.Mr Boahene, however, says the debate must move beyond sentiment and focus on the policy measures required to address the underlying problems within the power distribution sector.“Tariff increments all the time may not necessarily address operational efficiencies in terms of power distribution,” he said.According to him, ECG’s commercial and technical losses remain among the major challenges that need to be addressed.He noted that ECG’s losses stood at about 26% in 2025, despite efforts to reduce them, and are projected to reach about 25% this year.Mr Boahene said technical losses, in particular, are linked to obsolete infrastructure within the distribution network.“The technical losses, we’ve been talking about this for quite some time… about the need for us to upgrade our infrastructure, because most of the power that is transmitted through our distribution network gets lost in the network because of obsolete infrastructure,” he said.He also identified commercial losses as a significant concern, arguing that ECG’s inability to fully collect revenue from electricity supplied has wider implications for the financial sustainability of the energy sector.“If ECG is not able to account for all the power that it distributes, it means that we do not have enough to pay for the fuel supply,” he said.He added that the situation affects the ability of the sector to meet its obligations to Independent Power Producers (IPPs) and adhere strictly to the cash waterfall mechanism.Mr Boahene said government’s financial exposure to the energy sector makes it necessary to consider sustainable solutions to the recurring costs associated with power distribution.He noted that government has spent more than $1.5 billion to clear debts in the sector, while continuing to face other financial obligations, including capacity charges and fuel-related arrears.Against this background, he said the discussion on PSP should focus on whether the proposed arrangement can improve efficiency and address the persistent losses.He stressed that private sector participation should also not be confused with outright privatisation of ECG.“If we are not, if we have a challenge with private sector participation, which must also be distinguished from privatization of ECG, if that is the contention, then what is the policy proposal, for example, that TUC is bringing up?” he asked.Mr Boahene said stakeholders must therefore examine alternative policy interventions that can improve ECG’s operational efficiency while safeguarding consumers from excessive tariff increases.He maintained that the focus should be on finding a sustainable solution to the financial and operational challenges confronting Ghana’s electricity distribution system.