The Association of Ghana Industries (AGI) has strongly opposed the latest upward adjustment in electricity and water tariffs, urging utility providers to address operational inefficiencies and reduce system losses instead of shifting the financial burden onto consumers and businesses.
The Public Utilities Regulatory Commission (PURC) recently announced a 3.49 percent increase in electricity tariffs and a 0.85 percent rise in water tariffs, effective July 1, 2026. The decision has attracted criticism from industry players, labour unions and consumer advocacy groups.
In an interview, the Dean of the AGI Greater Accra Regional Branch, Tsonam Cleanse Akpeloo, questioned the basis for the latest tariff review, arguing that the economic indicators traditionally used to justify such adjustments do not support the increases.
According to him, the financial challenges confronting utility providers, particularly the Electricity Company of Ghana (ECG) and Ghana Water Limited, are largely the result of operational inefficiencies, including technical, commercial and distribution losses.
“Our view is that the utility companies should rather be focusing on tackling the losses. We are fully aware that these losses constitute about 30 per cent of the challenges they have to deal with. It appears to us that instead of dealing with their own losses, they would rather find comfort in easily passing them on to the general consumer,” Mr. Akpeloo stated.
He described the approach as unfair to businesses, especially manufacturers whose operations rely heavily on electricity, warning that the cumulative effect of successive tariff increases since the beginning of the year is placing significant financial strain on industry.
“For us in industry, we plan ahead. We really need time to plan for the year. When you look at the different increments we have witnessed since January and consider their cumulative effect, the burden on industry is enormous,” he said.
Mr. Akpeloo further revealed that electricity accounts for nearly 30 percent of production costs for many manufacturing firms, making any increase in utility tariffs a major concern for the sector’s competitiveness and profitability.
He also expressed concern that the latest tariff adjustments could undermine the government’s flagship 24-hour economy policy, which seeks to encourage businesses to operate around the clock to drive industrial growth, job creation and economic expansion.
“In an era of a 24-hour economy, where we are encouraging companies to work around the clock and produce for the nation, increasing electricity tariffs sends the wrong signal. Electricity is one of the most important inputs for businesses operating at night,” he noted.
The AGI has therefore called on regulators and utility providers to prioritise efficiency improvements, reduce technical and commercial losses, and strengthen operational performance rather than relying on tariff increases to address financial challenges.
The Association’s concerns add to the growing opposition to the PURC’s latest tariff review. The Minority in Parliament, labour unions, consumer groups and other business associations have also criticised the increases, arguing that they could raise production costs, weaken household purchasing power and slow economic growth.
