The Food and Beverages Association of Ghana (FABAG) has warned that the Public Utilities Regulatory Commission’s (PURC) proposed upward review of electricity tariffs will devastate businesses, trigger massive job losses, and undermine government’s flagship 24-hour economy initiative.
In a strongly worded statement, the Association described the planned increase as “a recipe for disaster”, stressing that the business community—particularly the food and beverages sector—is already in deep distress.
“Although food is a necessity, sales in the sector have dropped by 70 percent in recent months. Businesses are really struggling, and their woes have been worsened by the depreciation of the Ghanaian cedi,” FABAG noted.
Impact on Households and Energy Poverty
The Association said any upward adjustment will worsen the plight of ordinary citizens.
“Tariff increases will hit Ghanaian families where it hurts most—their daily survival. For low- and middle-income households, electricity and water bills already take up a large share of disposable income. Any further rise will force families to choose between keeping the lights on and putting food on the table,” it stated.
FABAG further cautioned that the hikes will deepen energy poverty, pushing vulnerable groups, especially women-led households and the rural poor, into harsher living conditions.
The group also questioned why inefficiencies in the utilities sector should be passed on to consumers.
“Should inefficiencies in the sector be continuously paid for by the struggling Ghanaian mother selling bread at dawn, the nurse keeping a clinic running at night, or the owner of a small-scale business fighting to stay afloat?” it asked.
Inflationary Shocks Across the Economy
According to FABAG, the adjustment will ignite fresh inflationary pressures.
“Utilities are the foundation of the cost structure for food, transport, and housing—key drivers of inflation. An upward review of tariffs, combined with the cedi’s depreciation, will unleash a wave of price increases on bread, kenkey, water, and beverages,” the Association warned.
It added that cold store operators, small restaurants, transport operators, and other service providers will pass the costs onto consumers, fueling widespread hardship and forcing tighter monetary policies that could further slow economic growth.
Jobs and Competitiveness at Risk
The Association stressed that many businesses, particularly small and medium-sized enterprises (SMEs), cannot survive another blow.
“Utility tariff hikes, especially from ECG, will wipe out already thin margins, leading to layoffs and factory downsizing. Any upward adjustment will place jobs and enterprises on the line,” FABAG said.
It further accused the Electricity Company of Ghana (ECG) of inefficiency, citing staff attitudes and persistent technical failures.
“Most workers have literally privatised their desks and remain unconcerned about non-functional prepaid meters. We cannot continue to reward inefficiency with tariff increases,” the Association stated.
FABAG also warned that Ghana’s competitiveness under the African Continental Free Trade Area (AfCFTA) is under threat.
“Higher production costs will render Ghanaian products uncompetitive against imports from countries with cheaper energy, undermining AfCFTA opportunities, discouraging investment, and derailing the 24-hour economy vision,” it cautioned.
Call for Reform and Protection of the Vulnerable
FABAG demanded reforms and accountability in the utility sector before any tariff review is considered.
“Every tariff increase not matched by efficiency gains is a direct attack on jobs, livelihoods, and Ghana’s industrial base. We demand performance-linked tariffs. Utilities must first reduce system losses, improve collections, change staff attitudes, and cut waste before passing costs to consumers,” the group argued.
It also called for protection for vulnerable households and businesses.
“The PURC must expand lifeline bands for genuine low-income users and design support measures for SMEs, especially those in the food and beverages sector,” FABAG urged.
Conclusion
The Association concluded that Ghanaians must not be made to pay for inefficiency.
“Every cedi lost to poor collections, outdated infrastructure, and system leakages should not be transferred to the pockets of hardworking citizens and struggling businesses. A tariff increase without accountability is not reform—it is punishment. We urge PURC to put the people first: phase adjustments, demand efficiency, protect the poor, and support Ghanaian businesses. That is the only way to balance cost recovery with economic survival,” the statement emphasized.
