FABAG Calls for Suspension of Tariff Increase Amidst ECG’s ‘Cancerous’ Inefficiencies
The Food and Beverages Association of Ghana (FABAG) has sounded the alarm, rejecting the recent decision by the Public Utilities Regulatory Commission (PURC) to increase electricity tariffs by 9.8% and water tariffs by 15.9%. In a strongly-worded press release, FABAG Chairman Reverend John Awuni condemned the move, citing ECG’s “cancerous” inefficiencies and calling for immediate reform.
According to FABAG, the tariff increase is “unacceptable, unjustifiable, and insensitive” given the current economic climate. The association points to ECG’s overspending of its approved budget by GHC 189.2 million without authorization, as exposed by the Public Accounts Committee, as a prime example of the utility company’s mismanagement.
FABAG demands a full disclosure of the procurement processes and accountability for the overspending, which ballooned from under GHc 1 billion to over GHC 8.3 billion in 2023. The association also highlights ECG’s technical and commercial losses exceeding 30%, making it one of the worst performers in Africa.
The tariff increase, FABAG argues, will have devastating consequences for businesses, particularly SMEs, and exacerbate the cost of living crisis for ordinary Ghanaians. The association is calling for the immediate suspension of the tariff increase and a comprehensive overhaul of ECG and the Ghana Water Company.
“FABAG will continue to defend the interests of our members and the wider Ghanaian public,” Reverend Awuni said. “Ghana deserves power and water sectors that work, not those that survive by punishing its consumers.”
Read full release below:
