Small and micro businesses across Ghana are under severe pressure as rising electricity tariffs and the rapid depletion of prepaid power credit threaten their survival.

From hairdressing salons and barbering shops to cold stores and small retail outlets, entrepreneurs say the rapid depletion of prepaid power credit has become one of their biggest operating challenges, forcing many to either increase prices or risk shutting down their businesses.

The concerns come amid widespread complaints by electricity consumers that prepaid credit is vanishing unusually fast, despite minimal usage.

The situation has heightened public frustration, with some consumers reporting that their electricity credit now runs out at rates far exceeding the 9.86% average tariff increase approved for the first quarter of 2026.

For small businesses that rely heavily on electricity to operate equipment and preserve goods, the impact has been particularly severe.

At a recent People’s Forum held in Adenta, several small business operators described how the rising cost of power was eroding their profits and threatening their livelihoods.

A hairdresser at the forum said the electricity tariffs were forcing her to reconsider how she runs her business.

“My dryers run non-stop throughout the day, but now the electricity costs mean I either increase the price of my services or close the shop earlier than usual,” she said.

Barbers and traders expressed similar frustrations, noting that their prepaid meters consume credit quickly even after recent top-ups.

Cold store operators warned that rising electricity bills could have a ripple effect on food prices because refrigeration costs have increased significantly.

“If electricity keeps rising like this, the price of frozen food will go up,” one cold store operator said. “We cannot absorb these costs forever.”

Participants at the forum estimated that small businesses are facing an effective tariff increase of about 28%, placing additional strain on entrepreneurs already struggling with high living costs and inflation.

A presentation at the event examining electricity tariff trends from 2009 to 2024 using data from the Public Utilities Regulatory Commission showed that tariffs have increased significantly over the years.

The data indicated that electricity tariffs rose by a cumulative 294.6% between 2009 and 2016, averaging 36.8% annually during that period, which coincided with the prolonged power outages popularly known as “dumsor.”

Between 2017 and 2024, tariffs increased by about 84.6%, with some years experiencing reductions or freezes.

However, recent tariff adjustments have raised fresh concerns among consumers.

Scaled block charges for residential electricity users increased from GH¢1.6093 per kilowatt hour for consumption between zero and 300 kilowatt hours in October 2024 to GH¢2.1023 by January 2026.

Similar increases were recorded for non-residential customers.

Participants at the forum argued that these adjustments have effectively pushed overall electricity tariffs up by about 58 percent between October 2024 and January 2026.

Some speakers also questioned the accuracy of quarterly tariff reviews conducted in 2025, suggesting that inflation projections may have been overestimated by about 2.19% during the first two quarters.

Beyond the numbers, business owners say the rising electricity costs are translating into real hardship.

“This is beyond numbers on paper,” one trader told the gathering. “Electricity costs are crippling our businesses and affecting how we survive.”

Many of the participants also criticised the government for failing to implement reforms promised in its 2024 manifesto, including the introduction of Time-of-Use tariffs intended to make electricity more affordable during off-peak hours.

The forum ended with calls for urgent government intervention, better regulation of prepaid meters and greater transparency in electricity pricing.

For thousands of small and micro business owners who depend on electricity to keep their businesses running, the issue is no longer just about tariffs—it is about survival.