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Tariff increments won’t fix GWL, ECG woes – FABAG tells Mahama

John Awuni, Executive Chairman of the Food and Beverages Association of Ghana (FABAG), has criticised the ongoing hikes in utility tariffs, arguing that these increases do little to address the underlying inefficiencies at the Electricity Company of Ghana (ECG) and the Ghana Water Company Limited (GWCL).

Awuni’s remarks come after FABAG urged President John Dramani Mahama to introduce urgent reforms at ECG, noting that the utility’s persistent financial losses continue despite frequent tariff hikes. The association has also given the government a 30-day deadline to set up a performance compact aimed at assessing and enhancing the efficiency of ECG and GWCL.

Speaking on the Citi Breakfast Show on Tuesday, October 7, 2025, Awuni pointed out that repeated tariff increases across different administrations have failed to resolve the problems facing these utilities. “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 stated.

“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.

Source: William Narh

Benjamin Mensah
Benjamin Mensahhttps://freshhope1.org
Benjamin Mensah [Freshhope] is a young man, very passionate about the youth of this Generation. Very friendly, reliable and very passionate about the things of God and all that I do. The mission is to inform, educate and entertain. Feel free to send your whatsapp messages to +233266550849 and call on +233242645676
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