The Food and Beverages Association of Ghana (FABAG) has called for an immediate halt to the 9.8% electricity and 15.9% water tariff increases approved by the Public Utilities Regulatory Commission (PURC) for 2026.
In a statement December 8, 2025, FABAG described the hikes as “unacceptable, unjustifiable, and insensitive,” blaming inefficiency, mismanagement, and corruption at the Electricity Company of Ghana (ECG) and the Ghana Water Company.
“The ECG’s cancer is known, and the symptoms are very visible and what Ghanaians and businesses are waiting for is how the ECG intend to cure its cancer rather than tariff increases,” the association said.
FABAG pointed to recent findings by Parliament’s Public Accounts Committee, which revealed that ECG overspent its approved budget by GH₵189.2 million without authorization. The association demanded accountability, calling for a framework to identify those responsible for the overspending.
The association also highlighted broader operational challenges, including technical and commercial losses exceeding 30%, ballooning procurement costs—from under GH₵1 billion to over GH₵8.3 billion in 2023—and weak enforcement against internal theft and illegal connections.
“The inefficiencies, losses, mismanagement, corruption, poor workers’ attitude, general revenue shortfalls and poor service delivery of these utilities are the real reasons these sectors continue to collapse under their own weight,” FABAG said.
The association warned that the tariff increases would worsen the cost of production for food and beverage manufacturers, increase food prices, and place additional pressure on small and medium-sized enterprises.
FABAG is demanding an immediate suspension, full operational audits, loss-reduction measures, and accountability enforcement before any tariff adjustments.
