The Food and Beverages Association of Ghana (FABAG) has renewed calls for sweeping reforms in the electricity and water sectors, demanding a full operational audit of the Electricity Company of Ghana (ECG) and the Ghana Water Company Limited following the approval of new tariff increases for 2026.
In a statement issued on Monday, December 8, 2025, FABAG rejected the Public Utilities Regulatory Commission’s (PURC) decision to raise electricity tariffs by 9.8 percent and water tariffs by 15.9 percent, arguing that the utility providers have failed to demonstrate efficiency or accountability.
“The ECG’s cancer is known, and the symptoms are very visible, and what Ghanaians and businesses are waiting for is how the ECG intend to cure its cancer rather than tariff increases,” the association said.
FABAG pointed to findings by Parliament’s Public Accounts Committee, which revealed that ECG overspent its approved budget by GH₵189.2 million without authorization, and demanded accountability.
“FABAG wants a leadership accountability framework, naming those responsible for the GH₵189.2 million in the unapproved expenditure,” the statement noted.
The association also raised concerns about procurement practices, alleging massive overspending. “Spending ballooned from under GH₵1 billion to over GH₵8.3 billion in 2023, representing nearly 700 percent overspending,” it said.
According to FABAG, technical and commercial losses at ECG exceed 30 percent, placing the company among the worst performers in Africa, with no clear plan to reverse the trend.
The association warned against using tariffs as a substitute for reforms. “Ghana cannot tax or tariff-increase its way out of a broken power and water sectors. The solution is restructuring, digitization, accountability and proper revenue management.”
FABAG called for the immediate suspension of the tariff increase, public disclosure of operational audits, aggressive loss-reduction measures, and the prosecution of internal theft and illegal connections.
Source: Starrfm.com.gh
