High Electricity Bills Killing Businesses

Small and medium scale business owners in Ghana are facing severe economic strain following the ever increasing electricity tariffs, threatening to shutter local enterprises.

The vibrant hum of hair dryers and the steady drone of cold store compressors are falling silent across Ghana’s urban centers. At the latest gathering of The People’s Forum in Adenta, a growing chorus of traders, barbers, and hairdressers sent a clear message to the government: the current cost of electricity is a “death sentence” for small enterprises.

Following an effective 28.4% tariff hike, energy costs have reached a breaking point. Residential block charges, which stood at GH¢1.6093  per kWh in October 2024, have climbed to a staggering GH¢2.1023 GH¢ as of January 2026. For many, this represents a doubling of operational expenses in just over a year.

A History of Hikes

Data presented by the Public Utilities Regulatory Commission (PURC) offered a grim historical perspective. Between 2009 and 2016, during the NDC tenure, Ghanaians weathered a 294.6% cumulative hike, dominated by the infamous ‘dumsor’ era. While the subsequent NPP administration (2017–2024) initially provided relief with a 17.5% reduction in 2018 and maintained a more modest 84.6% total increase, the current 2025–2026 surge has wiped out that stability.

“My meter is running like it’s in a race,” lamented a barber from Makola Market. “GH¢100 used to last me a month; now it is gone in two weeks.”

Over-Pricing Allegations

The forum sparked controversy by exposing potential over-projections in quarterly adjustments. Analysts noted that despite falling inflation and stabilizing fuel costs in 2025, tariffs continued to climb. Specifically, the PURC was flagged for a 2.19% inflation over-pricing in the first half of 2025, leading to accusations that the system is “rigged” against the consumer.

Broken Promises

The discontent is not limited to current policy. Attendees criticized the NDC’s 2024 manifesto for failing to deliver on promised Time-of-Use (ToU) tariffs and affordability reviews. Without these measures, cold store operators warned that the high cost of cooling will inevitably lead to a surge in food prices, further squeezing Ghanaian households.

As government officials remain silent, the public outcry is intensifying. With businesses threatening to shutter their doors, the call for an immediate tariff reduction and greater transparency in ECG pricing has moved from the forum floor to the center of national debate. As one trader succinctly put it: “This is change we simply can’t afford.”