Tariff increases will cripple traders

The Ghana Union of Traders’ Association (GUTA) has strongly criticised the Public Utilities Regulatory Commission (PURC) over recent utility tariff hikes, describing the Commission’s justification as unconvincing and tone-deaf to the current economic hardship facing businesses and ordinary Ghanaians.

This follows PURC’s announcement of a 14.75% increase in electricity tariffs and a 4.02% rise in water charges, effective May 3, 2025.

PURC went on to explain that the upward adjustments were necessitated by several economic and operational indicators, including the exchange rate between the Ghana cedi and the US dollar, inflation projections, fuel costs (particularly natural gas), and the current hydro-thermal generation mix.

However, in a statement signed by its General Secretary, Alpha A. Shaban, GUTA rejected the rationale provided for the increases, stating that the reasons “do not hold water.”

“We appreciate the fact that life is not static, and changes are inevitable when necessary — but not at the whim of any particular body,” the statement read.

GUTA argued that instead of transferring the burden to consumers, PURC should focus on eliminating inefficiencies and waste in the management of electricity and water services, which it identified as the real drivers of rising operational costs at the Electricity Company of Ghana (ECG) and the Ghana Water Limited.

The group went further to criticise the broader public sector, claiming it has become a “gold mine” for personal enrichment among public and civil servants.

“It appears the public sector is now being turned into a gold mine, where every public or civil servant takes advantage to enrich themselves within a short period of time,” the statement alleged.

GUTA is therefore calling on the government to clamp down on misappropriation and corruption within state institutions.

“We appeal to the government to focus more attention on this negative attitude to public service, identify all the theft, diversion, misappropriation, or misapplication of state funds or property, and deal with them decisively to recover all the stolen assets,” the statement concluded.