Bulk industrial consumers in Ghana now face a 48% increase in electricity costs. This surge stems from a change in their billing structure with the Electricity Company of Ghana (ECG). The Association of Ghana Industries (AGI) warns this development threatens the competitiveness of Ghanaian manufacturers.
This significant hike adds to the burdens of companies already grappling with high production costs. Mr. Seth Twum-Akwaboah, the AGI's Chief Executive Officer, highlighted that electricity expenses consistently pose the greatest challenge for businesses. This cost escalation impacts operational capabilities, expansion potential, and job creation.
Electricity costs have, for two consecutive quarters, been the primary concern in the AGI Business Barometer Report. This report tracks key challenges for Ghanaian businesses and consistently points to utility expenses as a major factor. The current increase affects companies that consume large amounts of electricity and previously had special arrangements for lower rates. This background context is vital for understanding the broader economic pressures on Ghanaian industries.
Mr. Twum-Akwaboah articulated the manufacturers' concerns during an interview on the Channel One TV Quarterly Economic Review on Thursday, July 9, 2026. He stated, “For businesses, we are operating with costs. If your costs are stable and reduced, it implies that if you maintain the same price levels, your revenue will be favourable.” He added that good revenue streams are essential for expansion and maintaining operations and employment.
The previous arrangement allowed bulk customers to access power at comparatively lower rates. This was based on the economic principle that consuming larger quantities generally leads to lower unit costs. The Energy Commission negotiated this arrangement, permitting bulk consumers to acquire electricity at a reduced rate. However, the ECG subsequently altered the status of these customers, leading to the substantial tariff increase.
This unexpected tariff adjustment will likely force manufacturers to pass on increased production costs to consumers. Higher prices for domestically produced goods could follow, pushing up inflation. This scenario makes Ghanaian businesses less competitive in both local and regional markets. The AGI has been discussing these issues with stakeholders since the beginning of the year, emphasizing the limited control businesses have over electricity prices, which the Public Utilities Regulatory Commission (PURC) fixes.
The current situation could impede Ghana's industrial growth goals. Decision-makers will need to address how to balance the financial health of power utilities with the sustainability of local manufacturing. Businesses will closely monitor future tariff adjustments and government interventions regarding energy policy. The stability of electricity costs is crucial for maintaining a predictable operating environment for industries and ensuring sustained economic growth.