ECG's financial woes stem more from poor management than low tariffs – FABAG

The President of the Food and Beverages Association of Ghana (FABAG), John Awuni, has attributed the persistent financial challenges facing the Electricity Company of Ghana (ECG) to weak financial management rather than low tariffs.

His remarks follow recent findings by Parliament’s Public Accounts Committee (PAC), which flagged widespread financial indiscipline and operational inefficiencies within ECG.

According to the PAC, the power distributor failed to account for significant public funds, engaged in unapproved expenditures, and exhibited poor internal controls, issues that continue to erode public trust.

Speaking to GhanaWeb Business on October 29, 2025, Reverend Awuni said such practices not only undermine confidence in ECG’s operations but also place an unfair burden on consumers.

“FABAG has taken keen notice of the PAC’s revelations. These findings confirm what we’ve consistently maintained: ECG’s financial woes are not primarily due to inadequate tariffs, but rather stem from poor financial management, revenue leakages, and operational inefficiencies,” he stated.

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Awuni urged the Ministry of Energy and the Energy Commission to conduct immediate performance audits and introduce robust accountability measures to ensure the prudent use of public resources.

He also called for a suspension of the Public Utilities Regulatory Commission’s (PURC) ongoing and future tariff review processes, advocating instead for an “efficiency-first” approach.

Under this model, any tariff adjustments would be tied to measurable improvements in ECG’s performance.

FABAG further recommended that ECG publish a clear roadmap outlining cost-cutting measures, strategies to reduce system losses, and reforms aimed at strengthening financial discipline and operational effectiveness.

SA/MA

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