The Ghanaian business community has kicked against the hikes in electricity and water tariffs, arguing that the development will cripple businesses.
The business community, represented by the Association of Ghana Industries (AGI) and Ghana National Chamber of Commerce and Industry (GNCCI) said the electricity and water tariffs will dampen hopes of business recovery and employment prospects in the West African nation.
Last Monday, the Public Utilities Regulatory Commission (PURC) announced a 29.96 per cent and 8.3 per cent increment in electricity and water tariffs respectively. And they are expected to take effect from February 1, 2023.
The announcement has generated discussion on both social and mainstream media platforms.
Reacting to the development, the President of the Ghana National Chamber of Commerce and Industries (GNCCI), Clement Osei Amoako noted that the high utility tariffs in the country have forced most businesses to look elsewhere for cheaper tariffs while others have folded up.
He expressed shock that despite the current economic challenges, consumers would be made to pay more for utilities.
“There is a way out to get it [downward review of utility tariffs] done. They would have to look at it.
“If it has to go back to Parliament for them to look at it, we will lobby the Parliament Select Committee and all those that matter to make sure we will not keep the current price. This will ensure ordinary Ghanaians and businesses survive,” Mr. Clement Osei Amoako said during an interview with Accra-based Joy FM.
On their part, the Association of Ghana Industries, in a statement issued by its Chief Executive, Seth Twum-Akwaboah described the level of increments as excessive.
He said businesses were hoping to see signs of recovery this year, having been under pressure from an unstable business environment coupled with so much uncertainty since last year; hence, the recent increase in utility tariffs could spell doom for recovery and employment prospects.
“The level of utility tariff increments for water and electricity as captured in the PURC’s release is too high for industry to bear, particularly at this time,” its Chief Executive Officer said.
While acknowledging that the review is in line with the quarterly automatic adjustment as required of the regulator, he said the timing and level of increments would throw cold water on businesses’ ability to recover from economic downturns of the last few years.
“We reckon that our utility companies need to recover the cost to sustain their operations, but when end-user tariffs get to unbearable levels, the effect could be dire for both industry and the utility companies.
“We, therefore, urge the PURC to expedite action toward full reversal of the tariff structure in support of the government’s industrial transformation agenda,” Mr. Twum-Akwaboah added.
Apart from asking the PURC to address what it believes is a punitive tariff regime, AGI urged the government to ensure efficient utility infrastructure and logistics management to save costs in these difficult times.
“We expect the government to control macroeconomic instability—a major trigger and driver for such sudden changes in tariffs—level and price hikes,” he said.
Meanwhile, the Executive Secretary of PURC, Dr Ishmael Ackah, has indicated that nothing can be done about the hikes in utility tariffs for now since the tariffs have already been gazetted to take effect in February 2023.
“The decision has been made and it has been gazetted as a law. For now, nothing can be done on the part of PURC,” he said.
Source: https://energynewsafrica.com
