The Food and Beverages Association of Ghana (FABAG) has called for deep reforms in the electricity sector, cautioning that frequent power tariff hikes are stifling industrial expansion and adding strain on struggling manufacturers.
The group’s Executive Chairman, Rev. John Awuni, said Ghana’s strategy for fixing electricity problems relief too heavily on raising prices instead of fixing the waste that weighs on utilities and customers.
His remarks came after the Public Utilities Regulatory Commission (PURC) declared a 3.49 per cent rise in electricity rates for all users and a 0.85 per cent water tariff increase, starting July 1, 2026.
PURC explained the changes were based on major economic factors, such as inflation patterns, currency shifts, fuel prices and adjustments in the power generation mix.
Yet Rev. Awuni contends the constant tariff jumps do not solve the core financial and operational problems facing the industry.
“The persistent increases in electricity tariffs are a complete disincentive for industrial development,” he said. Industry leaders have long pointed to power costs as a top barrier to business growth in Ghana, especially in manufacturing and agro-processing where electricity takes up a large part of production costs.
Rev. Awuni said rising utility bills are making it harder for firms to grow, stay competitive and generate employment.
He warned that while tariff revisions might offer short-term cash relief to providers, they fail to boost efficiency along the power supply chain or fix deep-rooted structural flaws.“Continuous adjustments of electricity tariffs will never make the utility sector efficient, will never make the industrial sector develop, and will never bring illegal users of electricity into a legal space,” he stated.
The FABAG Chairman disputed claims that Ghana’s energy troubles come from cheap power, insisting that poor management, weak revenue collection and distribution losses are the real problems.
He pointed out that Ghana already has some of the highest electricity prices in the region, adding that more hikes could hurt local industry competitiveness and scare off fresh investment.
Rev. Awuni pressed authorities to adopt bolder, lasting reforms that cut waste, lower losses and lift performance across the sector.“We must begin to face the bull by the horns, and facing it by the horns is not the continual adjustment of electricity tariffs.
That is a very lazy way of dealing with the inefficiency of the power sector,” he said.The fear is that ongoing energy cost increases could cut factory output, delay investment and derail Ghana’s wider industrialisation drive just as leaders push for faster growth and more jobs.
Rev. Awuni cautioned that without strong, creative fixes to the sector’s core issues, Ghana risks losing investor trust and capping the expansion of its productive industries.
