Business Industry expresses concern over utility tariff Hike

June 4, 2024
Business Industry expresses concern over utility tariff Hike

Players in the Business Industry have expressed concern over the recent increase in utility tariffs, describing the move as insensitive and burdensome.

The Public Utilities and Regulatory Commission () has announced an upward adjustment in water and electricity tariffs for the second quarter of 2024, effective July 1.

However, the business community argues that the government should have absorbed the cost instead of passing it on to consumers, who are already struggling with the impact of depreciation and high inflation rates.

John Awuni, Executive Chairman of the Food and Beverages Association of Ghana (FBAG), speaking to Citi News stated that the government should have used the price stabilisation levy to stabilise prices instead of passing the burden to consumers.

“They shouldn't have done it at this point in time. Considering the rate of depreciation, the government should have found absorbing it rather than passing it onto consumers, considering how prices are going up and up.  We have in the price stabilisation levy that could have been used to stabilise rather than just passing everything to consumers.”

“Because every day, your income is depreciated against the foreign currency. The government has to be sensitive and know that some of these things they must find a way rather than allowing the agencies and just passing everything to the consumer.”

Mark Badu, the Chief Executive Officer of the , warned that the tariff hike would exacerbate the plight of businesses, which are already suffering from the rapid depreciation of the local currency and other factors.

“This is obviously not good news for businesses in Ghana. Already businesses in Ghana are suffering from the rapid depreciation of local currency; the high cost of borrowing, high inflation and others so any increase in electricity and water, no matter how minimal it is, it's going to compound the already bad situation and worsen the plight of businesses in Ghana.”

Leave a Reply

Your email address will not be published.

Latest from Business