The Ghana Union of Traders’ Associations (GUTA) has strongly opposed the Public Utilities Regulatory Commission’s (PURC) planned increases in electricity and water tariffs, urging the regulator to suspend the adjustments scheduled to take effect on July 1, 2026.
The traders’ body argues that prevailing economic conditions do not support the decision to raise utility charges and has questioned the rationale provided by the Commission for the latest review.
PURC announced on June 22 that electricity tariffs would increase by 3.49 percent while water tariffs would rise by 0.85 percent under its third-quarter tariff adjustment framework.
In a statement issued on Wednesday, June 24, GUTA rejected the factors cited by PURC, including exchange rate movements, inflation, fuel costs and generation mix, describing them as insufficient grounds for imposing additional costs on consumers and businesses.
According to the Association, the depreciation of the cedi by 4.18 percent between April and May was relatively modest and should not trigger a tariff increase.
GUTA also pointed to inflation figures, noting that the rate moved only slightly from 3.4 percent in April to 3.7 percent in May, which it believes does not justify higher utility charges.
The Association further argued that fuel prices have recently declined, with petrol prices dropping by 9.3 percent and diesel prices falling by 1.7 percent during the second pricing window in June, reducing one of the major cost drivers often used to support tariff adjustments.
On electricity generation, GUTA maintained that there are currently no significant operational challenges within the power sector that would warrant increased tariffs, stating that generation infrastructure is functioning normally.
“The cedi indeed depreciated by an average of 4.18% between April and May, but this depreciation is insignificant, which does not call for any increment. Inflation just rose from 3.4% in April to 3.7% in May, which is also minimal,” the Association stated.
GUTA warned that higher utility costs could place additional financial pressure on businesses already grappling with operational expenses and could ultimately affect the prices of goods and services.
The Association is therefore calling on PURC to reconsider the decision and suspend the planned tariff increases in the interest of businesses and consumers, while engaging stakeholders on alternative approaches to managing utility sector costs.
