Brong Ahafo Businesses Coalition condemns tariff increases by gov’t

The Brong Ahafo Businesses Coalition has strongly condemned the recent upward adjustment in utility tariffs as announced by the Public Utilities Regulatory Commission (PURC), set to take effect on May 3, 2025.

The coalition says it may embark on a massive demonstration to protest this decision by the government if nothing is done about it. It is also calling on the government to prioritize policies that enhance the livelihoods of the citizenry.

The coalition, comprising various small and medium-sized enterprises (SMEs), led by its coordinator, Mr. Yeboah Mustapha, views the decision by the PURC to adjust electricity tariffs upwardly by 14.75% and water by 4.02% as insensitive and threatening to businesses and livelihoods.

“The lights are not even stable; businesses that run with electricity are also not progressing. 4.02% rise in water tariffs? This will affect water-reliant services like hairdressing salons and food vendors, leading to increased prices for consumers”, he added.

The Public Utilities Regulatory Commission (PURC) recently announced an upward adjustment in electricity and water tariffs, set to take effect on May 3, 2025, following the Commission’s quarterly tariff review process for the first and second quarters of 2025.

The review, according to the PURC, was aimed at ensuring revenue stability for utility service providers while minimizing the financial impact on consumers.

Under the new rates, electricity tariffs will increase by an average of 14.75%, while water tariffs will go up by 4.02%.

The PURC attributed the adjustments to several factors, including the exchange rate between the Ghana cedi and the US dollar, inflation projections, fuel costs (particularly natural gas), and the current hydro-thermal generation mix.

High cost of living

In an exclusive interview with rbnewshub.com, the coordinator emphasized that the tariff hike will further burden SMEs already grappling with high inflation, unstable currency, which will lead to a rise in the cost of goods and services, exacerbating the cost-of-living crisis, and discourage youth entrepreneurship

Mr. Yeboah reiterated that the PURC are intent to sabotage the government for burdening with the hike.

The coordinator in his call to action urged the PURC to reconsider the decision and engage in broader consultations with the government, stakeholders, particularly those at grassroots level.

The Association, which has a membership of about 2,000 is made up of hairdressers, dressmakers, tailors, barbers, private FM radio stations owners, welders and cold store operators.

Credit: Apiah-Kubi, Nkoranza (Bono East Region)