The Secretary-General of the Ghana Federation of Labor (GFL), Abraham Koomson, has attributed the recurring increases in electricity and water tariffs to operational inefficiencies, widespread revenue leakages, and poor payment compliance within the country’s utility sector.
Speaking on Ahotor FM, Koomson argued that while consumers often blame the Public Utilities Regulatory Commission (PURC) for approving tariff adjustments, the root causes lie in systemic challenges affecting utility providers, particularly the Electricity Company of Ghana (ECG).
According to him, research conducted by the labor organization indicates that nearly 35 percent of electricity consumers do not pay for the power they consume, creating a significant revenue deficit that ultimately forces regulators to approve periodic tariff increases to keep utility companies financially operational.
Koomson explained that electricity theft, illegal connections, faulty metering systems, delayed bill payments, and technical losses continue to undermine the financial health of ECG, making it increasingly difficult for the company to recover operational costs.
He warned that unless these longstanding challenges are addressed, Ghanaians should expect continued upward adjustments in utility tariffs, as service providers will require additional revenue to maintain electricity generation, transmission, and distribution infrastructure.
The labour leader stressed that the burden of these inefficiencies is unfairly transferred to honest consumers and businesses that consistently pay their utility bills.
He further noted that rising electricity and water tariffs are significantly increasing the cost of doing business in Ghana, particularly within the manufacturing, agro-processing, hospitality, and small business sectors.
According to Koomson, many industries are already struggling with high production costs, expensive imported raw materials, exchange rate volatility, and rising operational expenses. Additional increases in utility costs, he said, risk reducing business competitiveness while slowing industrial growth and job creation.
He therefore urged government and utility providers to intensify efforts to reduce commercial and technical losses by investing in modern metering technology, improving revenue collection systems, strengthening monitoring mechanisms, and prosecuting individuals involved in electricity theft and illegal connections.
Koomson also called for greater transparency in the management of public utilities, arguing that improved operational efficiency would reduce the need for frequent tariff reviews while ensuring better service delivery to consumers.
Energy economists have similarly maintained that addressing inefficiencies within the power distribution sector remains one of the most sustainable ways of stabilizing electricity prices over the long term. They argue that reducing losses, expanding the customer payment base, and modernizing infrastructure would improve the financial sustainability of utility companies without placing excessive pressure on consumers.
As discussions over utility pricing continue, many Ghanaians are calling for reforms that balance the financial viability of service providers with the need to protect households and businesses from the growing cost of electricity and water.
