Utility Tariff Hike: 'ECG, GWCL are the real cancer in Ghana’s economic development' – FABAG

The Food and Beverages Association of Ghana (FABAG) has accused the Electricity Company of Ghana (ECG) and the Ghana Water Company Limited of worsening the economic plight of citizens instead of contributing to national growth.

Executive Chairman of FABAG, John Awuni, said the recent utility tariff hikes announced by the Public Utilities Regulatory Commission (PURC) effectively cancel out the 9% base pay adjustment agreed for public sector workers in 2026.

He argued that inefficiencies, losses, mismanagement, corruption, poor service delivery, and revenue shortfalls within the utility companies are the real reasons the sector continues to collapse.

FABAG insists that consumers should not be punished for the failings of ECG and Ghana Water through repeated tariff increases.

“ECG and Ghana Water have become a real cancer in the economic development of Ghana. ECG, for instance, has become the very disease it was created to cure—an institution meant to power national growth but now drains productivity and trust from every corner of the economy,” Awuni said.

FABAG rejected PURC’s decision to increase electricity tariffs by 9.86% and water tariffs by 15.92%, effective January 1, 2026.

Increase in utility tariffs unfair - Ghana Federation of Labour

The Association described the move as “unacceptable, unjustifiable, and insensitive,” particularly at a time when Parliament’s Public Accounts Committee has exposed inefficiencies and financial waste at ECG.

Awuni warned that the hikes will worsen the cost of living crisis, force many businesses, especially small and medium enterprises (SMEs) to shut down, reduce employment, or increase prices.

He added that the increases will be counterproductive to efforts at curbing food inflation, since food and beverage manufacturing depends heavily on electricity and water for production, storage, and distribution.

“Until these inefficiencies are cured, tariff adjustments will remain illegitimate and unacceptable. What Ghanaians and businesses are waiting for is how ECG intends to cure its cancer, not more tariff increases,” he stressed.

The PURC has justified the new tariffs by citing rising operational costs and the need to maintain reliable service delivery.

The Commission has consistently argued that adjustments are necessary to offset inflation, currency depreciation, and the high cost of fuel and water treatment.

SA

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