The Food and Beverages Association of Ghana (FABAG) has urged the government to prioritize efficiency and accountability at the Electricity Company of Ghana (ECG) before considering any tariff increases, following revelations of financial indiscipline within the company.
In a statement issued on Wednesday, October 29, 2025, FABAG said recent findings by Parliament’s Public Accounts Committee (PAC) have exposed widespread financial mismanagement and operational inefficiencies at ECG.
The association noted that the disclosures confirmed what it had long maintained — that the utility company’s financial challenges were not due to low tariffs, but rather weak financial management, revenue leakages, and poor operational practices.
According to the PAC’s report, ECG failed to account for significant public funds, engaged in unapproved expenditures, and demonstrated poor internal controls. FABAG said such practices erode public trust and unfairly burden consumers who are repeatedly asked to pay higher tariffs to cover up inefficiencies.
“It is unjustifiable to demand higher electricity tariffs from consumers and businesses when the company itself continues to hemorrhage funds through waste, mismanagement, and poor governance,” the statement read.
FABAG called on the Ministry of Energy and the Energy Commission to conduct performance audits and enforce strict accountability measures to ensure the prudent use of public resources.
It also urged the Public Utilities Regulatory Commission (PURC) to suspend any ongoing or future tariff review processes until ECG demonstrates measurable performance improvements.
The association further demanded that ECG publish a clear roadmap outlining cost-cutting measures, loss-reduction strategies, and reforms aimed at improving efficiency and transparency.
“Ghanaians deserve reliable electricity at fair prices — not higher tariffs to finance inefficiency,” FABAG stated, adding that it remains open to public discussions and debates with ECG on the matter.
Source: Starrfm.com.gh
