The Ghana Union of Traders Association (GUTA) has reacted to the upward adjustment in water and electricity tariffs by 4.88%.
According to GUTA, the increment in electricity and water tariffs by 3.02% and 1.86%, respectively, will worsen the plight of citizens.
The association also believes that the rise will reduce the purchasing power of consumers.
Public Relations Officer for GUTA, Joseph Paddy, lamented this in an interview.
“The new tariff is not justifiable. That [the new tariff] is a result of increasing gas prices and also interest rates and exchange rates going up. Who caused the exchange rate to go up? And that is what the fiscal committee has been complaining about, the instability in the system.
“So they should come again otherwise, it is going to make the cost of living in the country extremely difficult for Ghanaians and very high.
“Already, Ghanaians are complaining that the cost of living is extremely high in the country. And then coupled with that, we are bringing this increase at this critical moment. Even the timing is also a challenge”.
As a result, the electricity sector faces a revenue shortfall of GH₵173.98 million, while the water sector is short by GH₵12.01 million.
“Following the quarterly tariff review, the Commission wishes to inform the public that there will be a 3.02% increment in electricity tariffs and a 1.86% increment in water tariffs for the third quarter of 2024 for all categories of customers,” part of the statement read.
The Commission explained that the increments are necessary to ensure the financial stability of utility providers, including the Electricity Company of Ghana (ECG), Ghana Water Limited (GWL), and Northern Electricity Distribution Company (NEDCo) while balancing consumer protection.
PURC stressed that regulated utilities are expected to meet a revenue collection benchmark of 98%, which is critical to the sustainability of the energy and water sectors.