GUTA Has Opposed Utility Tariff Hikes, Says It Would Worsen Economic Hardship
- The Ghana Union of Traders Association has bemoaned the Public Utilities Regulatory Commission's utility tariff hikes
- According to GUTA, the tariff hikes would adversely affect the purchasing power of Ghanaians and worsen their economic plight
- The PURC has announced a 3.02% electricity tariff hike and a 1.86% water tariff hike for the third quarter of 2024
The Ghana Union of Traders Association (GUTA) has opposed the Public Utilities Regulatory Commission’s (PURC) announcement of utility tariff hikes.
According to GUTA, the increase in tariffs, especially as the country still reels from an economic downturn, would adversely affect consumers' purchasing power, further hurting the economy.
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Their remark follows the PURC’s announcement of a 3.02% electricity tariff hike and a 1.86% water tariff hike for the last quarter of 2024.
According to PURC, recent exchange rate fluctuations, the inflation rate and the weighted cost of natural gas have occasioned the need to hike tariffs.
The tariffs are expected to come into effect on Tuesday, October 1, 2024.
Reacting to the announcement, the GUTA Public Relations Officer, Joseph Paddy, said the tariff increase was unjustifiable and would worsen the country's economic hardship.
“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,” he told Citi FM.
He added that the time for the tariff increase is also a challenge and has thus urged the PURC to rescind its decision immediately.
PURC justifies tariff hikes
The PURC of Ghana has explained that the upward tariff adjustments were necessary to keep the lights on and the taps flowing.
The adjustments were reached following the commission’s quarterly review process, which ensured the tariffs reflected changes in key economic indicators, including the inflation rate and the weighted cost of gas.
The PURC explained that following a 4.96% depreciation of the cedi against the dollar between the second and third quarters of 2024, as well as other adjustments in several key indicators, the electricity sector experienced a revenue shortfall of GH₵173.98 million and GH₵12.01 million in the water sector.
The tariff adjustments would affect all categories of customers, commencing on October 1.
The commission stated that the increments have become necessary to ensure the financial stability of utility providers, namely the Electricity Company of Ghana (ECG), the Northern Electricity Distribution Company (NEDCo), and the Ghana Water Company Limited (GWCL).
PURC warns ECG on brink of collapse
YEN.com.gh reported that the PURC said the ECG's debts have reached unsustainable levels.
The PURC said the company is currently struggling even to pay workers' salaries on time and finance any administrative functions.
The PURC also said it was time for the government to begin considering some solutions to save the company from going under.
Proofread by Edwina N.K Quarcoo, journalist and copy editor at YEN.com.gh.
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Source: YEN.com.gh
