The Food and Beverages Association of Ghana (FABAG) has said that the recent parliamentary probe into the Electricity Company of Ghana (ECG) validates its stance that a thorough clean-up of the utility’s finances must precede any increase in electricity tariffs.
This demand comes as Parliament’s Public Accounts Committee (PAC) uncovered over GHC 180 million in unapproved expenditures by the ECG in 2024, with its ranking member calling for the prosecution of responsible staff.
In a press statement issued on October 29, 2025, FABAG asserted that the “widespread financial indiscipline and operational inefficiencies” exposed by the PAC confirm that ECG’s financial troubles are not due to inadequate tariffs but to “weak financial management, revenue leakages, and operational inefficiencies.”
“FABAG reiterates its long-standing position that efficiency, accountability, and transparency must precede any consideration of tariff adjustments,” the association said. “It is unjustifiable to demand higher electricity tariffs from consumers and businesses when the company itself continues to hemorrhage funds through waste, mismanagement, and poor governance.”
The association’s position was immediately contextualized by revelations during a PAC hearing on October 28, 2025. Samuel Atta-Mills, the Committee’s Ranking Member, revealed that according to the Auditor-General’s report, ECG had exceeded its budget on thirteen line items without the required board approval.
The financial discrepancies were harsh. While the company budgeted GHC 2.8 million for staff fuel, it spent GHC 3.6 million. The budget for communication was GHC 4.2 million, but actual spending ballooned to GHC 7.9 million. Most notably, the budget for stakeholder expenses was GHC 3.1 million, yet ECG spent a GHC 49 million.
“All these you did on your own without even board approval. And you want to increase our tariffs?” Atta-Mills questioned.
In a recommendation, he added, “This shows financial indiscipline. Those managers who were involved, I’m recommending that they need to face the Attorney General for prosecution.”
This is the latest in a long-standing tension between utility providers, regulators, and consumer groups in Ghana. ECG has consistently cited revenue shortfalls, partly attributed to tariff rates and distribution losses, as a key challenge. This has led to periodic applications to the Public Utilities Regulatory Commission (PURC) for tariff increases, which are often met with public outcry.
Business groups like FABAG, representing a sector heavily reliant on stable and affordable power, have long argued that the root problem is not the tariff level but internal inefficiency and financial mismanagement within ECG. The PAC’s findings provide them with powerful evidence to support this claim.
In its statement, FABAG made three key demands:
- The Ministry of Energy and the Energy Commission to institute immediate performance audits at ECG.
- The PURC to suspend any tariff reviews in favor of an “efficiency-first” approach, tying future adjustments to measurable performance improvements.
- ECG management to publish a clear roadmap for cost-cutting and reform.
