Three major business associations have jointly petitioned President John Dramani Mahama to intervene and stop the Public Utilities Regulatory Commission (PURC) from approving any additional increases in electricity and water tariffs.
The associations — the Food and Beverage Association of Ghana (FBAG), the Ghana Plastic Manufacturers’ Association (GPMA), and the Ghana Union of Traders Association (GUTA) — argued that the frequent tariff adjustments intended to cover revenue shortfalls have instead encouraged inefficiency among utility providers, ultimately burdening both consumers and businesses.
They urged the Presidency to spearhead a comprehensive reform of the utility sector aimed at cutting technical and commercial losses to acceptable levels and ensuring fair, performance-based tariffs.
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As part of their petition, the associations called on President Mahama to launch a nationwide utility reform agenda within 30 days, supported by clear Key Performance Indicators (KPIs) and enforced through a presidential task force. The proposed initiative, they said, should focus on overhauling the operations of the Electricity Company of Ghana (ECG), Northern Electricity Distribution Company (NEDCo), and Ghana Water Limited (GWL).
FBAG’s Position
Speaking at a press conference in Accra, Rev. John Awuni, President of FBAG, said that implementing tariff hikes without meaningful reforms would force Ghanaians to continue subsidizing inefficiency, theft, and corruption.
“Businesses cannot keep carrying this burden. Power must first be affordable, reliable, and efficient before any new tariffs are considered,” Rev. Awuni stated.
He cited the Auditor-General’s reports and Energy Commission data, which consistently highlight inefficiencies within ECG. “In 2024 alone, ECG lost nearly one-third of all electricity purchased — 32 percent — far above the PURC benchmark of 21 percent,” he revealed.
He further disclosed that under-recoveries between August 2023 and July 2024 amounted to GH¢13.6 billion, while the average collection rate stood at only 43 percent, leaving a huge financial gap in the energy sector.
Rev. Awuni proposed the establishment of a Presidential Performance Compact involving ECG, GWL, the Ministry of Finance (MoF), PURC, and the Energy Commission, to be signed under the President’s authority.
He emphasized that reforming ECG and GWL was not just a management issue but also a matter of national security, economic stability, and governance legacy. An “efficiency-first” reform, he added, could protect households and businesses while transforming Ghana’s utilities into models of transparency and accountability.
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GUTA’s Position
Backing FBAG’s stance, Joseph Obeng, President of GUTA, described the recent increases in electricity and water tariffs as unsustainable, saying they have imposed unbearable financial strain on both consumers and enterprises.
He warned that the constant upward adjustments were eroding profit margins, discouraging investment, and weakening Ghana’s competitiveness within the subregion.
According to Mr. Obeng, the trend threatens to derail the government’s 24-hour economy initiative, as rising production and operational costs could make it difficult for businesses to operate efficiently around the clock.
GPMA’s Position
The President of GPMA, Ebbo Botwe, stressed that electricity costs constitute a major component of plastic manufacturing — representing about 9 percent of the cost of producing plastic bottles and up to 22 percent in recycling operations.
He cautioned that the new tariff hikes could push many manufacturers to relocate their operations to neighbouring countries such as Togo and Burkina Faso, only to export their products back to Ghana, in order to remain competitive.
Mr. Botwe emphasized that without urgent reforms and cost control measures, Ghana risks losing critical manufacturing capacity and jobs to other economies in the region.
Stroy By: Afia Ohenewaa Akyerem