The Ghana Union of Traders’ Association (GUTA) has kicked against the tariff increase announced by the Public Utilities Regulatory Commission’s (PURC) warning, the hikes will impose unbearable costs on businesses and deepen the financial struggles of ordinary Ghanaians.
The PURC announced a 14.75% increase in electricity tariffs and a 4.02% rise in water charges, both scheduled to take effect on May 3, 2025. The Commission attributed the upward adjustments to a mix of economic and operational pressures, including cedi depreciation, inflation trends, fuel price volatility particularly natural gas and the current energy generation mix involving hydro and thermal sources.
However, GUTA has dismissed PURC’s rationale as unconvincing and out of touch with the economic realities faced by businesses in Ghana’s volatile macroeconomic environment. In a strongly worded statement signed by General Secretary Alpha A. Shaban, the Association declared that the reasons cited by PURC “do not hold water,” stressing that price adjustments of this magnitude will severely hinder the survival of local enterprises.
“We appreciate the fact that life is not static, and changes are inevitable when necessary but not at the whim of any particular body,” GUTA stated.
According GUTA, these increases come at a time when businesses are already struggling to stay afloat due to inflation, currency instability, and weak consumer demand.
Rather than transferring the burden of operational inefficiencies onto consumers and the business community, GUTA is urging PURC and state-owned utilities to focus inward. The traders’ group criticized the Electricity Company of Ghana (ECG) and Ghana Water Limited for what it described as systemic inefficiencies, poor management, and revenue leakages that continue to inflate the cost of service delivery.
In a bold move, GUTA extended its critique to the broader public sector, accusing it of enabling corruption and misuse of public funds. The Association alleged that some public and civil servants have turned state institutions into personal “gold mines,” enriching themselves at the expense of taxpayers and undermining the efficiency of public service delivery.
“We appeal to 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 properties of the state.” the statement continued.
GUTA’s intervention adds fuel to the ongoing debate around utility pricing in Ghana, raising critical questions about transparency, governance, and the broader economic cost of inefficiencies within state-owned enterprises. Business leaders and consumer advocacy groups have echoed similar concerns in recent weeks, calling for reforms that prioritize value for money, operational discipline, and digital transformation to curb wastage and corruption.
While PURC maintains that the tariff adjustments are essential to maintaining service quality and infrastructure sustainability, the pushback from GUTA underscores growing dissatisfaction with the current utility pricing model. As the country navigates its economic recovery and energy transition goals, striking the balance between cost recovery and affordability remains a delicate challenge.
In the meantime, the business community is bracing for yet another wave of rising costs this time, not from the global market or exchange rate shocks, but from decisions made at home.
