The Executive Chairman of the Food and Beverages Association of Ghana (FABAG), John Awuni, has criticised the persistent increases in utility tariffs, describing them as ineffective in resolving the inefficiencies of the Electricity Company of Ghana (ECG) and the Ghana Water Company Limited (GWCL).
His comments follow FABAG’s earlier appeal to President John Dramani Mahama to implement urgent reforms at ECG, citing the need to address the company’s recurring financial losses despite frequent tariff adjustments.
The association has also issued a 30-day ultimatum to the government to establish a performance compact to measure and improve the efficiency of ECG and GWCL.
Mr. Awuni said repeated tariff increments over successive governments had failed to solve the challenges facing the utility companies.
“The utility companies have been asking for tariff increments since the government of John Agyekum Kufuor. So, if tariff increases were the solution, ECG and GWCL should not have problems by now,” he said.
“We are not against fair or economic pricing, but the problem with ECG’s losses is not about tariffs — it’s about poor work attitudes and corruption within the utilities.”
Mr. Awuni noted that President Mahama’s call for a national “reset” should reflect a shift towards structural reform rather than higher tariffs.
“John Dramani Mahama told us there is a need for a reset — a realignment. One of the reasons Nana Addo lost power was because of high tariffs and taxes. So, if Mahama’s government is coming to reset, is the tariff increment the reset they promised us? If you are doing tariff increments, then you are no different from Nana Addo’s government,” he argued.
FABAG maintains that only strong accountability mechanisms and institutional reforms will deliver sustainable improvements in Ghana’s utility sector.
