The Food and Beverages Association of Ghana has demanded a thorough cleanup of the Electricity Company of Ghana’s finances before any electricity tariff increase, following Parliament’s discovery of over 180 million cedis in unapproved expenditures.
In a press statement issued on October 29, 2025, the Food and Beverages Association of Ghana (FABAG) asserted that the widespread financial indiscipline and operational inefficiencies exposed by Parliament’s Public Accounts Committee (PAC) confirm that ECG’s financial troubles are not due to inadequate tariffs but to weak financial management, revenue leakages, and operational inefficiencies.
FABAG reiterated its long standing position that efficiency, accountability, and transparency must precede any consideration of tariff adjustments. 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 said.
The association’s position was 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.
“And you want to increase our tariffs?” Atta Mills questioned.
The financial discrepancies were significant. While the company budgeted 2.8 million cedis for staff fuel, it spent 3.6 million cedis. The budget for communication was 4.2 million cedis, but actual spending ballooned to 7.9 million cedis. Most notably, the budget for stakeholder expenses was 3.1 million cedis, yet ECG spent 49 million cedis.
Atta Mills recommended that managers involved need to face the Attorney General for prosecution, noting this shows financial indiscipline. This represents the latest 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 evidence to support this claim.
In its statement, FABAG made three key demands. The Ministry of Energy and the Energy Commission should institute immediate performance audits at ECG. The PURC should suspend any tariff reviews in favor of an efficiency first approach, tying future adjustments to measurable performance improvements. ECG management should publish a clear roadmap for cost cutting and reform.
