Stakeholders in the business sector are raising alarms over the recent hike in utility tariffs, labeling the decision as thoughtless and oppressive.
The Public Utilities and Regulatory Commission (PURC) has declared a rise in water and electricity tariffs starting from July 1, for the second quarter of 2024.
The business sector, however, contends that the government should have shouldered these increased costs rather than transferring them to the consumers, who are already grappling with the repercussions of the cedi’s devaluation and soaring inflation.
In a conversation with Citi News, John Awuni, the Executive Chairman of the Food and Beverages Association of Ghana (FBAG), suggested that the government could have utilised the price stabilisation levy to keep prices in check, instead of imposing the extra financial weight on the consumers.
“They shouldn’t have done it at this point in time. Considering the rate of depreciation, the government should have found absorbing it rather than passing it onto consumers, considering how prices are going up and up. We have in the price stabilisation levy that could have been used to stabilise rather than just passing everything to consumers.
“Because every day, your income is depreciated against the foreign currency. The government has to be sensitive and know that some of these things they must find a way rather than allowing the agencies and just passing everything to the consumer.”
Mark Badu, the Chief Executive Officer of the Ghana National Chamber of Commerce and Industry, warned that the tariff hike would exacerbate the plight of businesses, which are already suffering from the rapid depreciation of the local currency and other factors.
“This is obviously not good news for businesses in Ghana. Already businesses in Ghana are suffering from the rapid depreciation of local currency; the high cost of borrowing, high inflation and others so any increase in electricity and water, no matter how minimal it is, it’s going to compound the already bad situation and worsen the plight of businesses in Ghana.”
