Tariff hikes won’t fix ECG and GWL’s woes – FABAG tells gov’t

The Executive Chairman of the Food and Beverages Association of Ghana (FABAG), John Awuni, has criticised the constant rise in electricity and water tariffs.

Mr Awuni argues that the hikes have failed to fix the long-standing inefficiencies at the Electricity Company of Ghana (ECG) and the Ghana Water Company Limited (GWCL).

His comments follow FABAG’s earlier petition to President John Mahama, urging urgent reforms at ECG to stem its persistent financial losses despite repeated tariff adjustments.

The association has since issued a 30-day ultimatum to the government to introduce a performance compact that will hold ECG and GWCL accountable for efficiency.

Speaking in an interview, Mr. Awuni said successive governments had resorted to tariff increases as a quick fix, yet the problems remain unchanged.

“ECG and GWCL have been demanding tariff hikes since the days of President John Agyekum Kufuor. If tariff increments were the solution, they should have no problems by now,” he stated.

He stressed that inefficiency, corruption, and poor work ethics, not inadequate tariffs, are the real causes of the utilities’ woes.

“We are not against fair pricing. But the challenge is not tariffs. It’s mismanagement within ECG and GWCL,” he added.

Mr. Awuni further linked the issue to President Mahama’s recent call for a national “reset,” warning that simply raising tariffs contradicts that vision.

“President Mahama said we need a reset. But if that reset is just about tariff increments, then what makes his government different from Nana Addo’s? One of the reasons Nana Addo lost power was because of high tariffs and taxes,” he argued.

FABAG insists that only deep structural reforms, backed by strict accountability, can bring lasting improvements to Ghana’s utility sector.