Food and Beverages Association of Ghana Petitions President Over ECG Tariff Hike

The Food and Beverages Association of Ghana (FABAG) has petitioned the President of the Republic of Ghana, urging him to prioritize efficiency reforms at the Electricity Company of Ghana (ECG) before considering any tariff hikes. The association made this call in light of ECG’s proposed tariff increases for the 2025-2030 period.

Concerns Over Inefficiency
FABAG expressed concerns over ECG’s inefficiency, citing significant losses and poor revenue collection. In 2024, ECG lost nearly one-third of the electricity it purchased, with revenue collection averaging just 43%. The association also highlighted billing system failures that wiped out close to GH¢893 million in revenue and multi-billion-cedi financial discrepancies flagged by the Auditor-General.

Call for Executive Reform Agenda
The association is urging the President to declare an Executive Reform Agenda (ERA) for ECG, anchored in measurable Key Performance Indicators (KPIs) and enforced by a Presidential Task Force. This agenda would aim to address the systemic failures and inefficiencies within ECG, ensuring that the company operates more effectively and transparently.

Importance of Reform
FABAG emphasized the strategic importance of ECG reform, highlighting its impact on the economy, fiscal stability, and social stability. The association noted that inefficient power distribution threatens economic competitiveness, fiscal stability, and social stability, and that reforming ECG is crucial for Ghana’s development.

Proposed Solutions
The association proposed a Performance Compact between ECG, the Ministry of Finance, the Public Utilities Regulatory Commission (PURC), and the Energy Commission, signed under the President’s authority. The compact would include KPIs such as reducing losses, improving collection efficiency, and enhancing system reliability. FABAG also suggested leveraging financing from the Energy Sector Recovery Program-for-Results (ESRP) and strengthening enforcement mechanisms to address corruption and theft.

Expected Outcomes
If implemented, the proposed reforms are expected to yield significant outcomes, including reduced losses, improved financial sustainability, and enhanced industrial competitiveness. FABAG believes that efficiency-first reform will not only protect households and businesses but also position Ghana as a leader in energy reform in the ECOWAS region .