FABAG Cries Foul Over Tarrif hikes

The Food and Beverages Association of Ghana (FABAG) has sounded a strong warning to the government and the Public Utilities Regulatory Commission (PURC) over proposed electricity tariff hikes, saying the move will cripple businesses, cost jobs, and undermine the flagship 24-hour economy initiative.

In a strongly worded statement, FABAG described the planned adjustments as “a recipe for disaster,” noting that the sector is already reeling under economic stress. “Though food is a necessity, sales in the Food and Beverages sector have dropped by 70% in recent times,” the group said, blaming the situation on cedi depreciation and weak consumer demand.

FABAG cautioned that higher tariffs would deal a double blow to households and businesses. “For low and middle-income households, electricity and water bills already consume a large share of disposable income. Any further increase will force families to choose between keeping the lights on and putting food on the table,” the Association said, warning of worsening energy poverty, particularly for women-led households and rural communities.

The group also raised concerns about inefficiency at ECG, arguing that ordinary Ghanaians should not be forced to pay for waste and mismanagement. It warned that tariff hikes would ignite inflationary shocks across food, housing, and transport, driving up the cost of bread, kenkey, beverages, and other essentials.

FABAG further stressed that the move could erode Ghana’s competitiveness under AfCFTA, making local products more expensive than imports and stifling investment. “Utility tariff hikes will wipe out the current thin margins of SMEs and trigger layoffs and factory downsizing,” the Association stated.

It urged the government to address inefficiencies in the energy sector instead of passing costs onto struggling households and businesses.