The Brong Ahafo Businesses Coalition (BABC) has strongly condemned the recent upward adjustment in utility tariffs announced by the Public Utilities Regulatory Commission (PURC), set to take effect on May 3, 2025.
However, PURC stated that effective May 3, 2025, consumers of both electricity and water would experience increment in tariffs.
It follows a new tariff approval by the Public Utilities Regulatory Commission (PURC), which will see electricity jump by 14.75 per cent and water up by 4.02 per cent across the board for all customers.
The coalition, comprising various small and medium-sized enterprises (SMEs), led by the coalition's coordinator, Mr. Yeboah Mustapha, views the decision by the PURC to hike electricity tariffs by 14.75% and water by 4.02% as insensitive and threatening to businesses and livelihoods.
Utility tariffs to go up on May 3; 14.75% for electricity, 4.02 % for water
Utility tariffs to go up on May 3; 14.75% for electricity, 4.02 % for water.
Effective May 3, 2025, consumers of both electricity and water would experience increment in tariffs.
It follows a new tariff approval by the Public Utilities Regulatory Commission (PURC), which will see electricity jump by 14.75 per cent and water up by 4.02 per cent across the board for all customers.
The tariff, which was approved on Friday, April 11, 2025 was occasioned by changes in the exchange rate, domestic inflation rate, cost of natural gas and electricity generation mix, among others.
A statement issued on Friday evening and signed by the new Executive Secretary of PURC, Dr Shafic Suleman, explained that a total payment of the outstanding revenues from the previous quarters would have resulted in much higher increase in both electricity and water tariffs.
"The lights are not even stable, businesses that run with electricity are also not progressing", Yeboah stated.
He said the commission, being mindful of the current economic difficulties for Ghanaians decided to recoup only half of the outstanding debts.
This, he said, has always been the careful balancing act the commission has had to do to minimise the impact of tariff increases on livelihoods while ensuring that the utilities were well-capitalised to keep the lights on.
“The commission, in their decision reviewed upward the average end-user tariff for electricity by 14.75 per cent and also 4.02 per cent upward for water supply across board for all category of consumers,” he stated.
The PURC has concluded the regulatory process for the quarterly adjustment of electricity and water tariffs for the first and second quarters of 2025.
"4.02% rise in water tariffs? This will definitely affect water-reliant services like hairdressing salons and food vendors, leading to increased prices for consumers", he added.
In an exclusive interview on Fabea FM with Apiah-Kubi, 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 the grassroots level.
The coalition also calls on the government to prioritize policies supporting livelihoods to avoid their next action of demonstration.
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