The Food and Beverages Association of Ghana (FABAG) has opposed proposed increases in utility tariffs, warning that such a move would cripple businesses and undermine the government\u2019s 24-hour economy policy.<\/p>\n
The Electricity Company of Ghana (ECG) has for instance proposed a sharp upward review of electricity distribution charges, seeking an average 224 percent increase in the Distribution Service Charge (DSC1) over the 2025\u20132029 tariff period.<\/p>\n
In a press release sighted by Citi News on Sunday, September 14, FABAG said the planned tariff hikes, particularly by the Electricity Company of Ghana (ECG), would worsen the already dire situation facing businesses in the country \u2014 especially in the food and beverages sector.<\/p>\n
According to the association, sales in the sector have dropped by as much as 70% due to the current economic challenges, including the depreciation of the Ghanaian cedi. Many restaurants, hotels, wholesalers, and retailers are reportedly recording near-zero sales on a daily basis.<\/p>\n
\u201cThe business sector is at a standstill. Food may be a necessity, but people are simply not buying,\u201d the statement said.<\/p>\n
\u201cIf the food sector is this badly hit, what is happening in the non-food sector?\u201d<\/p>\n
FABAG argues that any upward tariff adjustment will lead to higher production costs, job losses, and the collapse of small businesses such as cold stores, bakeries, and local restaurants \u2014 many of which are already struggling to stay afloat.<\/p>\n
\u201cThe food and beverages sector is one of Ghana\u2019s largest employers and heavily depends on electricity and water. Increasing tariffs will wipe out thin profit margins and force many SMEs to shut down,\u201d the statement added.<\/p>\n
The group also warned that such increases could trigger inflationary pressures, pushing prices of essential items like bread, kenkey, water, and beverages even higher. Transport fares may also go up, further burdening ordinary Ghanaians.<\/p>\n
FABAG expressed concern that the proposed tariff hikes could directly undermine the government\u2019s flagship 24-hour economy initiative, which aims to promote continuous business activity and industrial growth.<\/p>\n
\u201cUtility costs are a major part of food, transport, and housing \u2014 the key drivers of inflation in Ghana. Increasing tariffs now will unleash a new wave of price hikes that will hurt households and slow economic growth,\u201d FABAG said.<\/p>\n
While the association supports cost-reflective tariffs in principle, it insists that any increases must be fair, phased, and tied to performance improvements by utility providers.<\/p>\n
FABAG is calling for greater transparency in how tariffs are calculated, and for the Public Utilities Regulatory Commission (PURC) to publish full cost breakdowns.<\/p>\n
\u201cWe demand performance-linked tariffs. Utilities must first reduce system losses, improve collections, and eliminate inefficiencies before passing costs onto consumers,\u201d the statement stressed.<\/p>\n
FABAG is also urging the PURC to expand lifeline tariff bands to protect low-income households and support measures that cushion small businesses from rising utility costs.<\/p>\n
\u201cThe government must not allow inefficiencies in the utility sector to be paid for by struggling mothers selling bread at dawn or small business owners trying to survive,\u201d FABAG concluded.<\/p>\n
The association has called on the PURC to reconsider the proposed tariff increases in light of the country\u2019s current economic challenges and the long-term impact on jobs, investments, and industrialisation.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Food and Beverages Association of Ghana (FABAG) has opposed proposed increases in utility tariffs, warning that such a move would cripple businesses and undermine the government\u2019s 24-hour economy policy. The Electricity Company of Ghana (ECG) has for instance proposed a sharp upward review of electricity distribution charges, seeking an average 224 percent increase in […]<\/p>\n","protected":false},"author":123457,"featured_media":13135,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"footnotes":""},"categories":[9,3525,41],"tags":[1575,4054],"class_list":["post-13134","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-economy","category-general-news","tag-24-hour-economy-2","tag-fabag"],"_links":{"self":[{"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=\/wp\/v2\/posts\/13134","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=\/wp\/v2\/users\/123457"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=13134"}],"version-history":[{"count":1,"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=\/wp\/v2\/posts\/13134\/revisions"}],"predecessor-version":[{"id":13136,"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=\/wp\/v2\/posts\/13134\/revisions\/13136"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=\/wp\/v2\/media\/13135"}],"wp:attachment":[{"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13134"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13134"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13134"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}