BY Nadia Ntiamoah
The Ghana Union of Traders’ Associations (GUTA) has mounted strong opposition to the Public Utilities Regulatory Commission (PURC) latest decision to increase electricity and water tariffs, urging the regulator to immediately suspend the implementation of the new rates scheduled to take effect on July 1, 2026.
The traders’ body argues that the economic conditions cited by the Commission to justify the latest upward adjustment do not support another increase and warns that the new tariffs will place an unnecessary financial burden on businesses and households already grappling with the high cost of doing business.
The call follows PURC’s announcement on Monday, June 22, that electricity and water tariffs would be adjusted upward under its third-quarter tariff review mechanism.
Under the new adjustment, electricity tariffs will increase by 3.49 per cent across all consumer categories, while water tariffs will rise by 0.85 per cent beginning July 1.
The Commission explained that the quarterly review was based on established regulatory parameters, including exchange rate movements, inflation, fuel prices and the country’s electricity generation mix.
However, GUTA has rejected those explanations, describing them as repetitive and unconvincing.
In a statement issued on Wednesday, June 24, the Association said PURC has relied on the same set of reasons for successive tariff reviews over the years without adequately considering prevailing economic realities.
According to GUTA, the recent depreciation of the Ghana cedi is too marginal to justify an increase in utility charges.
The Association noted that the local currency depreciated by an average of only 4.18 per cent between April and May, insisting that such a movement does not warrant higher electricity and water tariffs.
It also challenged PURC’s reliance on inflation, pointing out that the inflation rate increased only slightly from 3.4 per cent in April to 3.7 per cent in May, which it described as insignificant.
GUTA further argued that fuel prices, another key factor used in the tariff review formula, had actually declined during the second pricing window in June.
According to the Association, petrol prices fell by 9.3 per cent while diesel prices dropped by 1.7 per cent, making it difficult to justify any upward adjustment based on fuel costs.
The traders’ body also dismissed concerns over electricity generation, maintaining that there are currently no operational challenges affecting the country’s power plants.
It argued that with generating equipment functioning efficiently, there is no basis for citing generation mix as a reason for increasing tariffs.
“The cedi indeed depreciated by an average of 4.18 per cent between April and May, but this depreciation is insignificant and does not call for any increment. Inflation just rose from 3.4 per cent in April to 3.7 per cent in May, which is also minimal. Regarding fuel prices, they fell in the second pricing window in June. Petrol fell by 9.3 per cent and diesel by 1.7 per cent. On the issue of generation mix, there is no problem as all the machines are working. PURC has no justification for this tariff increment,” the Association stated.
GUTA warned that increasing utility tariffs at this time could further raise operating costs for businesses, particularly traders and manufacturers, who rely heavily on electricity to sustain their operations.
The Association believes the additional costs are likely to be transferred to consumers through higher prices of goods and services, thereby undermining efforts to stabilise the economy and ease the cost-of-living burden.
PURC’s quarterly tariff review mechanism was introduced to allow utility prices to reflect changes in key macroeconomic variables such as inflation, exchange rates, fuel prices and electricity generation costs without waiting for major annual tariff reviews.
The regulatory framework is intended to ensure that utility providers remain financially viable while maintaining reliable electricity and water supply across the country.
Over the years, however, the quarterly adjustments have frequently attracted criticism from businesses, consumer advocacy groups and organised labour, who argue that repeated tariff increases continue to outpace improvements in service delivery.
