The Food and Beverages Association of Ghana (FABAG), in collaboration with the Ghana Union of Traders Association (GUTA) and the Ghana Plastic Manufacturers Association, has strongly criticised the Public Utilities Regulatory Commission (PURC) over its ongoing consultations aimed at increasing electricity tariffs in 2026.
In a statement on Monday October 20, 2025, the associations described Ghana’s current electricity pricing regime as “anti-business, anti-growth, and fundamentally flawed,” arguing that it is pushing local enterprises and households to the brink.
According to FABAG, the high cost of electricity is crippling manufacturing, forcing small and medium enterprises to scale down operations, lay off workers, and raise prices for already struggling consumers.
“Ghana’s electricity pricing system punishes honest businesses and users in general and rewards inefficiency,” the statement said.
It noted that while genuine users are burdened with high bills, mismanagement and corruption within the power sector continue unchecked—forcing many businesses and individuals to turn to illegal connections in order to survive.
FABAG warned that the country is “creating a society where honest business owners are punished while defaulters and illegal users thrive,” adding that the pricing structure is driving more people towards power theft.
The group said the current system not only discourages productivity but also undermines Ghana’s industrialisation agenda, particularly for sectors like cold storage and manufacturing that depend heavily on electricity.
The associations further argued that frequent tariff hikes have done little to fix the real problems in the energy sector, such as inefficiency, waste, and poor revenue collection.
They urged the PURC and the government to confront the root causes of the crisis instead of placing the burden on consumers and businesses.
“The government and PURC must face the truth: this is not a pricing system, it’s a trap. A trap that kills jobs, discourages investment, and fuels criminality,” FABAG declared.
The group is demanding a full audit of the actual cost of power production and distribution, the introduction of a transparent and fair tariff system, relief measures for manufacturers, and a crackdown on corruption and waste within utility agencies.
FABAG urged President Mahama and the PURC to take immediate steps to reform the sector.
“Enough is enough! We are tired of lip service and empty promises. Electricity must empower not impoverish. His Excellency, the President must act now! It’s time for PURC to stand up for honest businesses and Ghanaians in general,” the statement concluded.
Source: Starrfm.com.gh
