The Ghana Union of Traders’ Association (GUTA) has strongly criticized the Public Utilities Regulatory Commission (PURC) over recent utility tariff hikes, describing the Commission’s justification as “unconvincing” and “tone-deaf” to the current economic hardship facing businesses and ordinary Ghanaians.
Effective May 3, 2025, PURC has announced a 14.75% increase in electricity tariffs and a 4.02% rise in water charges. According to PURC, the upward adjustments are necessitated by economic and operational indicators, including the exchange rate between the Ghana cedi and the US dollar, inflation projections, fuel costs, and the current hydro-thermal generation mix.
However, GUTA rejects the rationale provided for the increases, stating that the reasons “do not hold water”. In a statement signed by its General Secretary, Alpha A. Shaban, GUTA said, “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 argues that instead of transferring the burden to consumers, PURC should focus on eliminating inefficiencies and waste in the management of electricity and water services, which it identified as the real drivers of rising operational costs at the Electricity Company of Ghana (ECG) and the Ghana Water Limited. GUTA further criticized the broader public sector, claiming it has become a “gold mine” for personal enrichment among public and civil servants. “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 calling on the government to clamp down on misappropriation and corruption within state institutions. “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 concluded.
The tariff hike is expected to have a significant impact on businesses and households. For instance, Juliana Bayuo, a seamstress, noted that “if electricity tariffs go up, a bill that used to be GHȼ50 could rise to GHȼ80, GHȼ90, or even GHȼ100, and that will affect us”. Similarly, Bismark Manu, Manager of Pep Talk Enterprise, expressed concerns over the repercussions of the hike in utility tariffs, stating that “anytime the cost goes up, it means the client will also draw back”.
