The Food and Beverages Association of Ghana (FABAG) has renewed calls for sweeping reforms in Ghana’s power sector, arguing that persistent inefficiencies—not electricity prices—are the root cause of the industry’s financial challenges.
The association’s concerns follow the Public Utilities Regulatory Commission’s (PURC) decision to increase electricity tariffs by 3.49 percent and water tariffs by 0.85 percent, effective July 1, 2026.
Executive Chairman of FABAG, Rev. John Awuni, said the recurring tariff adjustments are placing an increasing burden on businesses, particularly manufacturers and agro-processors, while failing to resolve the structural problems affecting the sector.
According to him, the continued reliance on tariff increases as a solution reflects a lack of innovation in addressing long-standing operational weaknesses within the utility industry.
“The persistent increases in electricity tariffs are a complete disincentive for industrial development,” Rev. Awuni stated.
He argued that rising energy costs are making it more difficult for local industries to remain competitive, expand production and create employment opportunities, at a time when the country is pursuing industrial growth and economic transformation.
Rev. Awuni maintained that the sector’s difficulties stem largely from inefficiencies in management, distribution and revenue collection rather than inadequate electricity pricing.
He warned that repeated tariff reviews could discourage investment and undermine confidence in Ghana’s productive sectors if policymakers fail to address the underlying causes of the challenges.
While acknowledging the financial pressures facing utility providers, the FABAG Chairman called for bold and sustainable reforms aimed at reducing losses, improving operational efficiency and broadening compliance among electricity consumers.
“Continuous adjustments of electricity tariffs will never make the utility sector efficient,” he said, urging authorities to focus on long-term solutions rather than what he described as a “lazy” approach to resolving the sector’s problems.
The association believes that tackling inefficiencies across the electricity value chain will be critical to supporting industrial growth, protecting jobs and strengthening Ghana’s competitiveness in the region.
