The Food and Beverages Association of Ghana (FABAG) has warned that the proposed increase in electricity tariffs by the Public Utilities Regulatory Commission (PURC) will cripple businesses, fuel job losses, and derail the government’s 24-hour economy agenda.
In a strongly worded statement, the Association described the planned adjustment as “a recipe for disaster”, noting that the food and beverage sector is already in deep distress.
“Though food is a necessity, sales in the Food and Beverages sector have dropped by 70% in recent times. Businesses are struggling, and the recent depreciation of the cedi has worsened the situation,” the statement said.
FABAG cautioned that higher tariffs would hit Ghanaian households hardest.
“An increase will strike families at their very core, their daily survival. For low and middle-income households, electricity and water bills already consume a large share of disposable income. Any further hikes will force families to choose between keeping the lights on and putting food on the table.”
The group further warned of growing energy poverty. “Vulnerable groups, especially women-led households and rural poor, will sink deeper into hardship if tariffs are raised.”
FABAG also questioned why inefficiencies in the power sector continue to be transferred to citizens.
“Should inefficiencies in the utility sector be paid for by the struggling Ghanaian mother selling bread at dawn, the nurse keeping a clinic open at night, or the small business owner barely making ends meet?”
According to the Association, tariff hikes would trigger an inflationary spiral.
“Utilities are the backbone of food, transport, and housing costs. the drivers of inflation. Any upward adjustment will ignite fresh rounds of price hikes for bread, kenkey, water, beverages, and transport fares, worsening economic hardship.”
FABAG argued that businesses cannot withstand another blow.
“Utility tariff hikes, particularly from ECG, will wipe out the already thin margins of SMEs, forcing layoffs, factory downsizing, and enterprise closures. Jobs are on the line.”
The Association also accused ECG of inefficiency.
“The attitude of most ECG staff is unacceptable. Many have virtually privatised their desks, showing little concern for non-functional prepaid meters. We cannot continue to reward inefficiency by raising tariffs.”
FABAG stressed that Ghana’s competitiveness under the African Continental Free Trade Area (AfCFTA) was also at risk.
“Increasing production costs will make Ghanaian goods uncompetitive against imports from countries with cheaper energy, discouraging investment and undermining the country’s industrialisation and 24-hour economy drive.”
Calling for reforms and accountability, FABAG demanded Performance-Linked Tariffs.
“Every tariff increase without efficiency gains is a direct attack on jobs, livelihoods, and Ghana’s industrial base. Utilities must first reduce losses, improve revenue collection, change staff attitudes, and cut waste before passing costs to consumers.”
The Association insisted on protection for the poor and SMEs.
“The PURC must expand lifeline bands for genuine low-income users and design support measures for the food and beverage sector. The private sector is the engine of growth it must not be stifled.”
FABAG concluded with a firm call to action:
“Ghanaians cannot continue to pay for inefficiency. Losses from poor collections, outdated infrastructure, and system leakages must not be transferred to hardworking citizens and struggling businesses. A tariff increase without accountability is not reform it is punishment.
We urge PURC to put 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.”
