The Ghana Union of Traders’ Association (GUTA) has fiercely rebuked the Public Utilities Regulatory Commission (PURC) over its recent announcement of utility tariff hikes, warning that the move could spell disaster for already struggling businesses and deepen Ghana’s economic woes.
This comes after PURC on April 16, 2025, announced an upward adjustment of electricity tariffs by 14.75% and a 4.02% increase in water tariffs, set to take effect on May 3, 2025.
While the Commission attributed the increases to “economic and operational indicators” such as exchange rate volatility, inflation trends, fuel costs—especially natural gas—and the current hydro-thermal power generation mix, GUTA has rejected the rationale as unsatisfactory and disconnected from on-the-ground realities.
In a strongly worded statement signed by General Secretary Alpha A. Shaban, GUTA said the justification provided by PURC “does 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, reflecting growing frustration within Ghana’s business community.
GUTA’s concerns are rooted in what it describes as worsening economic conditions that have left many traders on the brink of collapse, and it believes the tariff hikes could be the final blow.
“The increases in tariffs, if allowed to proceed, will cripple traders and undermine business confidence in an already fragile economic climate,” the association warned.
Instead of passing rising costs to consumers and businesses, GUTA is urging PURC and utility providers to address systemic inefficiencies and financial leakages within their operations.
“PURC should focus on eliminating inefficiencies and waste in the management of electricity and water services,” the statement urged, suggesting that poor oversight and internal mismanagement at the Electricity Company of Ghana (ECG) and Ghana Water Limited are the real cost drivers—not macroeconomic trends alone.
The statement went further, turning a critical eye to the broader public sector, accusing it of being overrun by corrupt practices and self-enrichment schemes.
“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 now calling on government to take a proactive stance in rooting out corruption within state institutions.
According to the association, tackling corruption and mismanagement is key to easing the financial burden on Ghanaians without resorting to punitive utility rate hikes.
“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 indicated.
With businesses still reeling from inflation, high taxes, and a weakened cedi, this latest tariff hike adds another layer of uncertainty.
GUTA’s latest salvo signals a growing confrontation between regulators and the business community, which fears that ongoing policy decisions are being made without proper consultation or regard for real-life impact.
–BY Issah Olegor
