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Reading: ECG’s 225% tariff proposal threatens 24-hour economy agenda — Industry group warns
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BusinessGeneralHeadlines

ECG’s 225% tariff proposal threatens 24-hour economy agenda — Industry group warns

Industry associations including FABAG, GUTA, and the Plastic Manufacturers Association have warned that the company’s inefficiencies and proposed 225% tariff hike threaten the success of the 24-hour economy.

Hamdia Mohammed By Hamdia Mohammed Published October 6, 2025
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The Food and Beverages Association of Ghana (FABAG), the Plastic Manufacturers Association of Ghana, and the Ghana Union of Traders Association (GUTA) have jointly petitioned President John Dramani Mahama to order a comprehensive reform of the Electricity Company of Ghana (ECG) within 30 days, citing persistent inefficiencies and financial mismanagement.

The groups argue that ECG’s push for a 225% hike in its Distribution Service Charge (DSC1) from 2025 to 2030 is unjustifiable, especially when Auditor-General reports show that the company continues to record over 40% annual losses due to operational lapses and corruption.

At a press conference in Accra, Chairman of FABAG, Rev. John Awuni, warned that approving ECG’s proposed tariff increment would cripple local industries and derail the government’s flagship 24-hour economy agenda.

He stressed that reliable and affordable energy remains the cornerstone of industrial growth, adding that “power must be accessible to drive production, not a luxury item that only a few can afford.”

“Power is the foundation cause of production. So without affordable electricity and water, industrial take-off through the 24-hour economic agenda of the NDC government will fail.,” Rev. Awuni said.

It’s not just the power, as I said earlier, being available. The whole issue of the 24-hour economy that is being sold by the current government and all that hinges on power and water. So, if the power is available and industry cannot afford that power, or industry produces at a very high cost, nobody will buy.

And when nobody buys, demand is going to be low. When demand is low, there’s nobody that’s going to produce. Indeed, no business will keep operating 24 hours when nobody’s buying.”

He further likened the situation to denying the public access to basic necessities.

The associations are therefore calling on President Mahama to initiate an executive reform plan with measurable performance indicators, monitored by a presidential task force, to ensure efficiency and accountability within ECG.

According to them, a reformed, transparent, and efficient power sector is essential to sustain industrial productivity, attract investment, and ensure the success of the 24-hour economy policy.

Source: Starrfm.com.gh

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TAGGED:225% tariff proposal24-hour EconomyecgGhana NewsIndustry playersMahama
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