 has issued a strong warning that proposed utility tariff increases by the Electricity Company of Ghana (ECG), Northern Electricity Distribution Company (NEDCo), and the Ghana Water Company (GWC) will devastate businesses, worsen inflation, and derail the government’s flagship 24-Hour Economy initiative.){kind=link}
The Food and Beverages Association of Ghana (FABAG) has issued a strong warning that proposed utility tariff increases by the Electricity Company of Ghana (ECG), Northern Electricity Distribution Company (NEDCo), and the Ghana Water Company (GWC) will devastate businesses, worsen inflation, and derail the government’s flagship 24-Hour Economy initiative.
According to FABAG, the proposals come at a time when businesses are already reeling from severe economic challenges, including declining sales, a weakening cedi, and escalating operational costs. The Association revealed that sales in the food and beverages industry have slumped by as much as 70 percent in recent months, leaving restaurants, hotels, wholesalers, and retailers on the brink of collapse.
“Restaurants, hotels, wholesalers and retailers are recording literally zero sales day after day. If the Food and Beverages sector is suffering, then what is happening in the non-food sector?” FABAG queried in a statement.
The Association stressed that beyond the business community, households would bear the heaviest burden. With electricity and water already consuming a large share of disposable incomes, FABAG warned that tariff hikes would push many families into painful trade-offs.
“Any further increase will force families to choose between keeping the lights on and putting food on the table. Tariff increases will hit Ghanaian families where it hurts most – their daily survival,” the statement said.
FABAG further argued that utility tariff hikes could cripple the 24-Hour Economy policy, a key government initiative designed to boost productivity and create jobs. The Association warned that small and medium-scale enterprises (SMEs), which form the backbone of the policy, risk job cuts, factory downsizing, or outright shutdowns if production costs rise.
“Utility tariff hikes, especially from ECG, will wipe out the already thin margins of SMEs and trigger layoffs and factory downsizing. Any tariff adjustment upwards will seriously put jobs and enterprises on the line,” FABAG cautioned.
The Association also criticized inefficiencies in the utility sector, insisting that consumers should not be penalized for poor collections, outdated infrastructure, and system leakages.
“Every cedi lost to poor collections, outdated infrastructure, and system leakages should not be transferred to the pockets of hardworking citizens and struggling businesses,” FABAG stressed.
Instead, FABAG is calling for performance-linked tariffs, transparency in cost build-up, and targeted protection for low-income households and SMEs.
The warning comes amid recent petitions from ECG, NEDCo, and GWC for tariff adjustments to cover rising operational costs and losses. The Public Utilities Regulatory Commission (PURC) is currently reviewing the proposals, with a final decision expected soon.