The Food and Beverages Association of Ghana (FABAG) has attacked the Electricity Company of Ghana (ECG) and the Ghana Water Company, accusing the two utilities of crippling businesses and dragging the economy down with years of inefficiency and waste.

FABAG says the latest tariff increases approved by the Public Utilities Regulatory Commission are intolerable and must be suspended immediately.

The Association insists the utilities have become a burden rather than partners in economic growth, and warns that the new tariffs will shut down factories, raise food prices and worsen the cost-of-living crisis.

FABAG says the decision to raise electricity tariffs by 9.8 per cent and water tariffs by 15.9 per cent is unacceptable, unjustifiable and insensitive.

The Association argues that Ghanaians are still waiting for ECG to explain how it intends to fix what it calls “the cancer of inefficiency, financial waste, and mismanagement” exposed by Parliament’s Public Accounts Committee.

FABAG stresses that this cannot be swept under the carpet and says the country deserves to know how ECG plans to cure the cancer rather than hide behind tariff adjustments.

The Association describes ECG and the Ghana Water Company as a “real cancer in the economic development of Ghana” and says ECG has become the very disease it was created to cure.

FABAG says the power distributor was meant to power national growth, but now drains productivity and trust from every corner of the economy.

It cites inefficiencies, losses, mismanagement, corruption, poor worker attitude, revenue shortfalls and poor service delivery as the real reasons the utilities are collapsing under their own weight.

FABAG says instead of fixing these chronic structural problems, the PURC continues to punish consumers with new tariff increases.

It insists Ghanaians cannot continue paying for incompetence and corrupt acts. It says it is unacceptable for government to increase workers’ pay by 9 per cent and then approve a 25.7 per cent rise in utility costs.

The Association says it is alarmed that ECG overspent its approved budget by GH¢189.2 million without authorisation.

FABAG is demanding a leadership accountability framework that names those responsible.

It is also asking for full disclosure of procurement processes, especially how spending ballooned from under GH¢1 billion to over GH¢8.3 billion in 2023.

FABAG says technical and commercial losses now exceed 30 per cent, making ECG one of the worst performers in Africa, yet it is unaware of any credible plan to reduce the losses.

The group warns that the tariff increase will force many businesses, especially SMEs, to shut down, cut jobs or raise prices.

It says the impact will be severe on food inflation because manufacturing, storage and distribution all depend heavily on electricity and water. FABAG notes that no accountability mechanisms have been implemented to reduce theft or improve customer service.

It says consumers should not be paying for inefficiency, especially when ECG has repeatedly refused to publish transparent operational audits.

It warns that rising product prices will worsen the cost-of-living crisis and destabilise a sector that is a key contributor to jobs and revenue.

FABAG is demanding an immediate suspension of the tariff increases, a full operational audit of ECG and the Ghana Water Company with public disclosure, an aggressive loss-reduction programme with measurable targets, enforcement of accountability and prosecution of internal theft, and a cost-recovery model based on efficiency rather than endless tariff hikes.

The Association insists Ghana cannot tax or tariff-increase its way out of the crisis in the power and water sectors.

FABAG says the solution is restructuring, digitisation, accountability and proper revenue management, not burdening struggling businesses with higher costs.

It says it will continue to defend the interests of its members and the wider public because Ghana deserves utilities that work, not ones that survive by punishing consumers.