3 Bodies petition President against further utility tariff increases

Three business associations have appealed to the President to intervene and stop the Public Utilities Regulatory Commission (PURC) from approving any further tariff increases for utilities in the country. 

The associations — the Food and Beverage Association of Ghana (FBAG), the Ghana Plastic Manufacturers’ Association (GPMA) and the Ghana Union of Traders Association (GUTA) — insisted that the frequent tariff increases aimed at covering revenue shortfalls had allowed the utilities to remain inefficient, ultimately to the detriment of consumers and their businesses.

As part of reforms to ensure efficiency in the utilities, the associations maintained that the Presidency must lead a comprehensive reform of the utilities with the aim to reduce technical and commercial losses to reasonable standards and ensure fair tariffs for consumers.

Consequently, their petition called on President John Dramani Mahama to launch an executive reform agenda within 30 days, anchored on measurable key performance indicators (KPIs) and enforced by a presidential task force to overhaul the operations of the Electricity Company of Ghana (ECG), the Northern Electricity Distribution Company (NEDCo) and the Ghana Water Limited (GWL). 

FBAG's views

The President of FBAG, Rev. John Awuni, who spoke on behalf of the associations at a press conference in Accra yesterday, stated that any tariff hikes without reforms meant that Ghanaians would once again be forced to subsidise inefficiency, theft and corruption.

"In fact, businesses cannot keep carrying this burden because power must be affordable, reliable and effective before new tariffs are considered," he said.

Rev. Awuni explained that approving new tariff increases for utilities, especially ECG and GWL without deep reforms would be a profound injustice to businesses and households.

"The Auditor General's Report year after year and data from the Energy Commission reveal that ECG in particular is bleeding money through inefficiency, corruption and waste.

"For instance, in 2024 alone, ECG lost nearly one-third of the electricity purchased; 32 per cent of electricity lost in 2024 against PURC's benchmark of 21 per cent.

"Under recoveries between August 2023 and July 2024 amounted to about GH¢13.6 billion. Average collection rate within the period was an abysmal 43 per cent, leaving a gaping hole in the sector's finances," Rev. Awuni pointed out.

He called for the immediate establishment of a Presidential Performance Compact involving ECG, GWL, the Ministry of Finance (MoF), PURC and the Energy Commission — to be signed under the authority of the President.

The president of FBAG said reforming ECG and GWL went beyond utility management; it was a matter of national security, economic survival and a test of governance legacy.

Rev. Awuni stressed that if Ghana adopted an efficiency-first reform approach, the country could protect households and businesses while setting a continental example of how a struggling public utility could be transformed into a model of transparency, accountability and performance. 

GUTA's position

Supporting the earlier position, the President of GUTA, Joseph Obeng, described the recent increases in water and electricity tariffs as unbearable, stating that the frequency and magnitude of the hikes had placed a heavy financial burden on both businesses and consumers.

He explained that the continuous upward adjustments in utility costs had become counterproductive for the private sector, eroding profit margins, discouraging investment and undermining Ghana’s competitiveness within the sub-region.

Mr Obeng cautioned that the persistent rise in tariffs could jeopardise the government’s flagship 24-hour economy initiative, as higher production and operational expenses would make it difficult for businesses to operate sustainably around the clock and deliver the anticipated jobs and growth.

GPMA's position

The President of GPMA, Ebbo Botwe, explained that electricity remained a critical input for plastic production, accounting for about nine per cent of the cost of producing plastic bottles and up to 22 per cent for recycling activities.

He cautioned that with the new tariff increases, many manufacturers might be forced to relocate their operations to neighbouring countries such as Togo and Burkina Faso, and then ship their products back to Ghana to stay competitive and efficient.