The Food and Beverages Association of Ghana (FABAG) has warned that Ghana’s high and rising electricity tariffs are forcing many legitimate businesses to the brink, driving some to resort to illegal connections to survive.
The Association said the Public Utilities Regulatory Commission’s (PURC) ongoing consultations on another possible tariff increase next year risk worsening an already fragile business climate. It noted that the cost of electricity has become a major factor in job losses, reduced production, and the closure of many small and medium-sized enterprises.
According to FABAG, the pricing system has become unfair to honest users. “When electricity becomes unaffordable, it becomes a target for illegal access,” the Association said. “We are fast creating a society where honest business owners are punished while defaulters and illegal users thrive.”
Industry players say power theft, though illegal, has become an increasing temptation as tariffs outpace productivity and profits. FABAG described the current structure as “a system that punishes honesty and rewards inefficiency,” adding that businesses that comply with regulations often end up bearing the financial burden of widespread waste, losses, and poor collection practices in the utilities sector.
Energy analysts note that Ghana’s industrial competitiveness has been eroded by years of tariff hikes that fail to match improvements in service delivery or reliability. The problem, they argue, lies not in revenue shortfalls but in sector inefficiency, technical losses, and governance lapses.
FABAG insists that the solution lies in reform, not higher prices. “It’s imperative for the PURC to understand that pouring water into a leaking bucket does not simply make sense if the purpose is to conserve scarce water,” it said.
The group urged the government to prioritize a full audit of generation and distribution costs and implement reforms that reduce inefficiency and corruption. It also called for relief measures for productive sectors such as manufacturing, agro-processing, and cold storage, which bear the heaviest cost of power.
“Electricity must empower, not impoverish,” FABAG said, warning that the country risks discouraging investment and job creation if the system remains unchanged.
