The Ghana Chamber of Commerce and Industry (GCCI) has expressed shock about the increase in utility tariffs.
According to the association the decision to increase utility tariffs would lead to companies lay off more workers as a result of the irregular power supply.
In an interview with Citi Business news, President of the Ghana Chamber of Commerce and Industry (GCCI), Seth Adjei Baah said: “We are shocked and surprised because as at now, most people are not breaking even and I know places people are contemplating shutting down. To raise electricity prices by over 50 percent and water by over 60 percent, tells us that we should stop doing manufacturing and fold our arms. It is quite unfortunate and we think it is indirectly collapsing our businesses”.
He further noted the increase by the Public Utility and Regulatory Commission is unjustifiable. He stressed that “we are talking about consuming made in Ghana goods and it comes with prices; and these are the indications that are going to add up to the cost so that we do not become competitive. If that is happening, then we have a challenge on our hands”.
The Public Utility and Regulatory Commission Monday announced hikes in electricity and water tariffs.
Electricity has been increased by 59.2 percent while water has been adjusted by 67.2 percent.
This was however against a proposed increase of 128.6 percent by the ECG and a 400.2 percent increase by the Ghana Water Company Limited (GWCL).
Factors considered by the Commission before approving the increments are: Consumer Interest; Investor Interest; Economic Development of the Country; The Generation Mix; Fuel Mix; Availability of the Service; Growth in Demand; Power Purchase Cost (IPP); Revenue Requirement (to ensure Financial Viability of the Utility Service Providers); Cedi Dollar Exchange Rate.