The Ghana Union of Traders Association (GUTA) has expressed strong reservations regarding the recent increase in utility tariffs, questioning the basis on which the adjustments were made.
According to GUTA, the Public Utilities Regulatory Commission’s (PURC) decision to hike electricity and water tariffs will exacerbate the already high cost of living in the country, further reducing the purchasing power of consumers and placing an additional financial burden on businesses and households alike.
On Saturday, September 28, 2024, the PURC announced that electricity tariffs would be raised by 3.02 percent, while water tariffs would see a 1.86 percent increase, effective October 1.
PURC justified the adjustments by citing several economic factors, including fluctuations in exchange rates, rising inflation, and increasing gas prices. These reasons, according to the PURC, necessitated the upward revision as part of their quarterly review of utility pricing.
However, GUTA remains unconvinced and has questioned the validity of these justifications, arguing that the underlying causes of the economic instability driving the price hikes should be addressed instead of passing the burden onto consumers.
Joseph Paddy, the Public Relations Officer for GUTA, voiced the association’s concerns during an interview with Accra-based Citi FM, where he lamented the impact the new tariffs would have on ordinary Ghanaians.
According to Paddy, the increase is “not justifiable,” particularly when considered against the backdrop of the already challenging economic conditions faced by the populace.
“The new tariff is not justifiable. That [the new tariff] is a result of increasing gas prices and also interest rates and exchange rates going up. Who caused the exchange rate to go up? And that is what the fiscal committee has been complaining about, the instability in the system. So they should come again otherwise, it is going to make the cost of living in the country extremely difficult for Ghanaians and very high.
“Already, Ghanaians are complaining that the cost of living is extremely high in the country. And then coupled with that, we are bringing this increase at this critical moment. Even the timing is also a challenge.”
Source: Daniel Oduro Mensah
