GUTA Condemns “Crippling” Utility Tariff Hikes, Blasts PURC’s Justification

The Ghana Union of Traders’ Association (GUTA) has issued a strong condemnation of the Public Utilities Regulatory Commission (PURC) following the recent announcement of increases in utility tariffs. GUTA has described the PURC’s explanation for the hikes as unconvincing and insensitive to the prevailing economic difficulties faced by businesses and ordinary Ghanaians in areas like Adenta and across the nation.

This sharp criticism follows the PURC’s announcement of a significant 14.75% increase in electricity tariffs and a 4.02% rise in water charges, set to take effect on Friday, May 3, 2025.

The PURC had explained that these upward adjustments were necessary due to various economic and operational factors, including the fluctuating exchange rate between the Ghana cedi and the US dollar, projected inflation rates, the cost of fuel (particularly natural gas), and the current mix of hydro and thermal power generation.

However, in a strongly worded statement signed by its General Secretary, Alpha A. Shaban, GUTA vehemently rejected the rationale provided for the increases, asserting that the reasons presented “do not hold water.”

“While we understand that adjustments are sometimes necessary, they should not be arbitrary or imposed without due consideration for the severe economic challenges our members are currently grappling with,” the GUTA statement read.

GUTA argued that instead of passing the burden onto already struggling consumers, the PURC should prioritize addressing and eliminating inefficiencies and waste within the management structures of electricity and water service providers. The association identified these internal issues at the Electricity Company of Ghana (ECG) and the Ghana Water Limited as the primary drivers behind rising operational costs.

Furthermore, GUTA broadened its criticism to encompass the wider public sector, alleging that it has become a “gold mine” for personal enrichment among some public and civil servants, a situation they believe contributes to the financial burdens ultimately passed on to businesses and citizens.