FABAG Rejects Tariff Hikes, Cites Public Harm, Inefficiency

The Food and Beverages Association of Ghana (FABAG) on Dec 8 denounced the latest electricity and water tariff hikes as harsh, unjustified and a punishment for already strained households and businesses.

In a statement released on Dec 8, FABAG warned the Public Utilities Regulatory Commission (PURC) cannot keep demanding higher payments while ignoring what it describes as a “deep rot” within the Electricity Company of Ghana (ECG) and Ghana Water Company Limited.

“The tariff increase is simply unacceptable, unjustifiable and insensitive,” FABAG spokesperson Kwame Mensah told reporters. “PURC must first obtain clear answers from ECG on how it intends to cure the cancer of inefficiency, financial waste and mismanagement before burdening Ghanaians with higher charges.”

FABAG highlighted that while public‑sector salaries have risen by only nine per cent, the approved tariff hike amounts to a 25.7 per cent increase – a disparity the association deems unfair to households and small enterprises.

The group also cited findings from the Public Accounts Committee that ECG overspent its approved budget by GH₵ 189.2 million without authorisation and that procurement spending surged from under GH₵ 1 billion to over GH₵ 8.3 billion in 2023 – a rise of roughly seven‑hundred per cent.

Technical and commercial losses at ECG remain above thirty per cent, placing the utility among the worst performers on the continent, yet FABAG says it has not seen any credible plan to reduce those losses.

“Our manufacturers, especially in the food and beverage sector, depend heavily on reliable electricity and water,” Mensah added. “The hikes will push many firms to shut down, cut jobs or raise prices, further inflaming food inflation and the cost‑of‑living crisis.”

FABAG called for an immediate suspension of the tariff adjustment, a full operational audit of both ECG and Ghana Water Company with public disclosure, and an aggressive loss‑reduction programme anchored on efficiency rather than endless price increments.

The association urged the government and PURC to focus on restructuring, digitisation, accountability and proper revenue management as the real solution to the broken power and water sectors.

The ministry has not yet responded to FABAG’s demands, and the PURC declined immediate comment, signalling that the debate over the tariff hikes will likely continue in the coming weeks.

Image Source: MYJOYONLINE