The Executive Chairman of the Food and Beverages Association of Ghana (FABAG), John Awuni, has criticised the continuous increases in electricity and water tariffs, describing them as ineffective and counterproductive in addressing the deep-rooted inefficiencies of the Electricity Company of Ghana (ECG) and the Ghana Water Company Limited (GWCL).
His remarks come after FABAG issued a 30-day ultimatum to the government to establish a performance compact that will assess and improve the operational efficiency of both ECG and GWCL.
Tariff Increases Not the Solution
Speaking on the Citi Breakfast Show on Tuesday, October 7, 2025, Mr. Awuni argued that successive governments have relied excessively on tariff adjustments instead of tackling systemic challenges such as poor management, corruption, and weak accountability.
“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.
He added, “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.”
Call for Structural Reforms
Mr. Awuni urged the government to focus on structural reforms rather than price hikes, referencing President John Dramani Mahama’s call for a national “reset.”
“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’s Position
FABAG maintains that sustainable improvement in the country’s utility services will only be achieved through strong accountability systems, transparency, and institutional reform, not by burdening consumers with repeated tariff hikes.
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