The Food and Beverages Association of Ghana (FABAG) has called for the immediate suspension of the proposed electricity and water tariff increases for 2026, describing the adjustments as unacceptable and a threat to businesses and households.
The Public Utilities Regulatory Commission (PURC) has approved a 9.8 percent increase in electricity tariffs and a 15.9 percent increase in water tariffs, scheduled to take effect from January 1, 2026.
The announcement has triggered strong reactions from organised labour and business groups, with the Trades Union Congress (TUC) also describing the increments as “not acceptable to workers.”
In a statement issued on Monday, December 8, 2025, FABAG rejected the decision, arguing that the tariff hikes unfairly transfer the cost of inefficiency and mismanagement onto consumers rather than addressing underlying problems within the utility sector.
“The decision is unacceptable, unjustifiable, and insensitive especially at a time when the Ghanaian people are still waiting for the ECG in particular to explain in clear and measurable terms how it intends to cure the cancer of inefficiency, financial waste, and mismanagement,” the association said.
FABAG accused the Electricity Company of Ghana (ECG) and the Ghana Water Company Limited of weak governance and poor accountability, insisting that consumers should not be punished for operational failures. “Ghanaians cannot continue paying for ECG’s and the Ghana Water Company incompetence and corrupt acts,” the statement added.
The association noted that the tariff adjustments come at a particularly difficult time for workers and businesses, highlighting that while government has agreed to a 9 percent wage increase for 2026, utility tariffs are set to rise by a combined 25.7 percent.
“Businesses are already under severe cost pressure so this increase will force many businesses, especially SMEs, to shut down, reduce employment or increase prices,” FABAG warned.
FABAG has therefore urged the government and PURC to reverse the increases and prioritise reforms within the utility sector, including restructuring, digitisation, stronger accountability measures, and improved revenue management, arguing that sustainable solutions must come from efficiency rather than higher tariffs.
Source: Starrfm.com.gh
