The Food and Beverages Association of Ghana (FABAG) has criticised the Public Utilities Regulatory Commission (PURC) for its recent approval of a 9.86 per cent increase in electricity tariffs and a 15.92 per cent rise in water tariffs beginning January 2026, describing the decision as economically harmful and unjustified.
In a statement issued on December 8, FABAG urged the Commission to immediately reverse the tariff adjustments and instead channel its efforts into comprehensive reforms at the Electricity Company of Ghana (ECG) and Ghana Water Limited (GWL).
The association said the timing of the increment, especially while Ghanaians await clarity on ECG’s inefficiencies and financial lapses recently cited by Parliament’s Public Accounts Committee, shows little regard for the hardship facing consumers and businesses.
FABAG argued that ECG and GWL continue to be major bottlenecks to Ghana’s economic progress due to years of mismanagement, waste, corruption, poor maintenance culture, and revenue leakages.
“ECG has become the very disease it was created to cure; an institution meant to power national growth now drains productivity and trust across the economy,” the statement read.
The association stressed that the persistent operational failures of the utility companies, not revenue shortfalls, are the root cause of their financial struggles. FABAG warned that rather than addressing these entrenched structural problems, PURC is placing an unfair burden on consumers and industries already grappling with escalating costs of production.
FABAG insisted that Ghanaians should not be made to pay for the inefficiencies and questionable practices of ECG and GWL, especially when service delivery remains unreliable and inconsistent.
The PURC announced the new tariff structure on Tuesday, December 2, 2025, following the completion of its multi-year tariff review covering 2026–2030. Under the new regime, electricity tariffs will increase by 9.86% for all customer categories, with water tariffs expected to rise by 15.92% over the five-year period.
The Commission said the adjustments are necessary to support critical utility investments, maintain industry stability, and protect consumer interests.
FABAG, however, maintains that without urgent sector reforms, the tariff hikes will only deepen the financial strain on businesses and households, while failing to resolve the longstanding systemic issues crippling Ghana’s utility services.
Read the full statement below
