Accra: The Food and Beverage Association of Ghana (FABAG) has called on the President John Dramani Mahama-led Government to initiate urgent reforms in the Electricity Company of Ghana (ECG) and the Ghana Water Company Limited (GWCL) before approving any further tariff increases.
According to Ghana News Agency, Reverend John Awuni, the Chairman of FABAG, highlighted ongoing inefficiency, corruption, and revenue leakages within the two utilities as significant issues eroding public trust and threatening Ghana's economic growth. He made these remarks during a press conference in Accra themed 'Efficiency Before Tariffs: A Call for Urgent Presidential Reform of ECG and Ghana Water Company.'
Rev. Awuni emphasized that without addressing theft, corruption, and other critical issues, any tariff increment would exacerbate the cost of living and production in the country. He pointed out that the power sector is suffering from 'waste and mismanagement,' further noting that the ECG lost about 32 percent of purchased electricity in 2024, far exceeding the Public Utilities Regulatory Commission's (PURC) benchmark of 21 percent.
Between August 2023 and July 2024, ECG reportedly collected only 43 percent of the total revenue it billed, despite recording total earnings of GH?11.5 billion, of which GH?8.6 billion was officially declared. Rev. Awuni stated, "No company can survive when it loses a third of its product and collects less than half of what it sells."
Citing the 2024 Auditor-General's report, Rev. Awuni flagged ECG for multi-billion-cedi financial discrepancies and poor accountability systems. He further alleged conflict of interest situations within the company, with engineers and staff awarding inflated contracts to their private firms.
Rev. Awuni voiced concerns over recent proposals by ECG and GWCL to increase tariffs by up to 255 percent between 2025 and 2030, cautioning that such hikes would cripple local industries and burden households already struggling with high costs. He urged President John Dramani Mahama to establish a presidential reform task force comprising the ministries of Energy and Finance, the PURC, and other agencies to oversee the restructuring of these utility organisations.
He also recommended the introduction of quarterly publications of loss and collection rates to ensure transparency and accountability. Rev. Awuni stressed that 'power security' should mean electricity that is available, accessible, affordable, reliable, and sustainable. He warned that Ghana's current situation reflected 'power insecurity,' as many citizens could not afford electricity despite its availability.
FABAG reaffirmed its commitment to supporting the government's resetting agenda but insisted that addressing corruption and inefficiency in the power and water sectors is crucial for ensuring reliable and affordable utilities for all Ghanaians. The Association urged the government to prioritize reforms over tariff hikes, stating, "What we need now is accountability, efficiency, and fairness, not higher tariffs."
