Western Region Businesses Unhappy With Recent Upward Tariffs Announced By PURC

Western Region Businesses Unhappy With Recent Upward Tariffs Announced By PURC

  • Business operators in the Western Region are not pleased with the recently announced hikes in electricity and water tariffs
  • There are concerns that the tariff increases could lead to businesses laying off some of their workers
  • Electricity tariffs will go up by an average of 14.75% while water tariffs will go up by 4.02% on May 5, 2025

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Some business operators in the Western Region of Ghana have expressed frustration over the Public Utility Regulatory Commission's recently announced upward adjustment in electricity and water tariffs.

Electricity will go up by an average of 14.75% while water tariffs will go up by 4.02%.

Western Region, Water bill, electricity bill, water tariff, PURC
Western Region businesses are fearing the worst after utility tariff increases
Source: Getty Images

Business operators are concerned that the hikes in electricity prices will mainly negatively affect their businesses and add to the overhead costs they have to manage daily.

Speaking to YEN.com.gh, Charles Arthur, an operator of a Washing Bay in Effiakuma, a suburb of Sekondi-Takoradi, said the hikes might compel some colleagues in the business to lay off some of their workers.

He also said the prices charged customers could also go up.

“No businessman who operates in Washing Bay will ever be happy to hear this increase in tariffs. We have not increased our charges in a very long while. They have remained the same, and these tariff adjustments will certainly go against us."
"Customers become agitated each time we increase prices for provided services. Any justification we give them will be understood by them. But in this situation we are surely going to pass on the cost which has the tendency to scare off customers immediately we announce price hikes."

Arthur, who currently has employed 19 boys is not worried much with the water tariff because the taps in his area do not flow regularly, a situation which has compelled him to operate with a mechanical borehole.

One of the industries to be heavily affected in the region is the media space.

With a nosedive in advertisements, a key tool for the operations of every radio station, an increase in electricity will not be good news to managers, according to Alexander Nii Sackey, the General Manager of an urban radio station in Takoradi.

Sackey told Yen.com that currently he spends close to GH¢8000 on electricity monthly, adding that the increase in electricity tariff recently announced will shoot his expenses off gear.

“Currently, I am spending like GH¢8000 on electricity each month, pay salaries, pay employee SSNIT Contributions, buy stationery, administrative expenses, data for browsing and take care of other expenses, you can imagine. Yet adverts are not coming as they did before. There will be too much to bear if these adjustments are rolled out. Hmmm. This is serious. We will definitely pass the cost on to our clients since we can’t shut down the station."

Sackey called for the government's cushion business instead of the periodic upward adjustments.

He, however, added his voice to calls to seriously consider solar power as an alternative source of energy, as these period adjustments have no end in sight, and the constant intermittent power cuts the country continues to suffer at the detriment of businesses.

Meanwhile, some cold store operators are worried that the continuous increase in electricity tariffs will eventually kick most of them out of business.

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Source: YEN.com.gh

Authors:
Isaac Hughes avatar

Isaac Hughes (Western Region Correspondent) Isaac Duff-Tay Hughes is an accomplished reporter based in the Western Region with over 15 years of experience.