The Association of Ghana Industries (AGI) has expressed its concerns regarding a 48% rise in electricity costs experienced by bulk industrial consumers due to a modification in their billing structure with the Electricity Company of Ghana (ECG).
They caution that this situation could further diminish the competitiveness of Ghanaian manufacturers.
The Chief Executive Officer of AGI, Seth Twum-Akwaboah stated that electricity expenses have consistently posed the greatest challenge for businesses, with the recent hike adding additional strain on companies already grappling with elevated production costs.
Speaking in an interview monitored by The Ghana Report on the Channel One TV Quarterly Economic Review, which discussed the mid-year performance of the Ghanaian economy on Thursday, July 9, 2026, Mr. Twum-Akwaboah emphasised that electricity costs are a critical factor that businesses continuously monitor, as they directly influence their operational capabilities, expansion potential, and job creation.
“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. A good revenue stream allows for expansion and the ability to sustain operations and employment,” he remarked.
He noted that electricity costs have consistently been identified as the primary concern in the AGI Business Barometer Report over the last two quarters, underscoring the significant impact of utility expenses on industrial activities.
“Utility costs are extremely important. According to the AGI Business Barometer Report, for the past two quarters, electricity costs have emerged as the foremost challenge confronting businesses,” he stated.
Mr. Twum-Akwaboah clarified that the recent increase specifically impacted bulk customers, which are companies that utilise substantial amounts of electricity and had previously enjoyed special arrangements that permitted them to access power at comparatively lower rates.
He explained that this arrangement was grounded in the economic principle that customers consuming larger quantities of a product generally incur lower unit costs.
“The bulk customers are high-energy-consuming companies. And they had an arrangement with ECG. The arrangement was that because you are bulk customers, remember that in economics, the basic principle is that the more of a product you consume or you buy, the cost per unit will reduce for you,” he said.
According to him, the arrangement was negotiated through the Energy Commission, allowing bulk consumers to acquire electricity at a reduced rate. However, ECG subsequently altered the status of these customers, leading to a substantial rise in their tariffs.
“Now suddenly, ECG changed the status. And within one month, the electricity tariffs went up by 48% for those who are bulk customers,” he said.
Mr. Twum-Akwaboah indicated that industries had been in discussions with stakeholders regarding this matter since the start of the year, emphasizing that electricity costs were among the factors businesses had limited control over.
“There are factors you don’t have control over. Cost of electricity, you don’t have control. PURC fixes it. ECG will come after you if you don’t pay. So anytime it goes up, you are worried,” he said.
The AGI CEO cautioned that rising electricity costs could ultimately lead to higher prices for domestically produced goods, as manufacturers would pass the higher production costs on to consumers.
He stated that managing production costs was essential, as businesses that become too costly would find it difficult to compete in both local and regional markets.
“When your pricing level is increasing, it means inflation is going up. And when local production costs go up, what it means is that we are becoming less competitive in the market,” he said.
