By GhanaNewsPage 
The Ghana Union of Traders Association (GUTA) has expressed strong opposition to the recent upward adjustment in electricity and water tariffs announced by the Public Utilities Regulatory Commission (PURC).
According to GUTA, the new utility rates are not only ill-timed but also threaten the survival of micro, small, and medium-sized enterprises (MSMEs) in the country.
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The President of GUTA, Dr. Joseph Obeng, speaking at a press conference in Accra, called on the PURC to reconsider its decision, warning that the hike in tariffs will exacerbate the already high cost of doing business in Ghana.
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Utility Tariff Increases Come at the Wrong Time
The PURC recently announced an increase of 6.5% in electricity tariffs and a 4% rise in water tariffs, citing the need to maintain utility infrastructure, cover operational costs, and ensure consistent service delivery.
However, GUTA maintains that the increment comes at a time when traders and businesses are grappling with:
- High inflation
- Soaring exchange rates
- Increased taxes and levies
- Rising transport and import costs
“These utility hikes are simply unbearable. Our members are bleeding. The government cannot continue to pile burden after burden on the private sector while expecting it to thrive,” said Dr. Obeng.
Impact on Businesses and the Economy
According to GUTA, the increase will worsen the cost of goods and services, thereby fueling inflation further. Many traders, especially small-scale importers and shop owners, rely on electricity and water to operate cold stores, salons, printing presses, and other service-based businesses.
Dr. Obeng warned that if the hikes are not reviewed, it could lead to:
- Mass layoffs
- Business closures
- Reduced productivity
- Low investor confidence
“We are not against paying utility bills, but the increments must be reasonable and reflect the current economic reality. Right now, many of our members can barely keep the lights on,” he emphasized.
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Calls for Dialogue and Relief Measures
GUTA is calling on the government, particularly the Ministry of Energy and the PURC, to engage with key stakeholders in the business community before implementing such tariff adjustments.
They are also appealing for the introduction of targeted relief packages, including:
- Subsidies for MSMEs
- Flexible payment arrangements
- Tax rebates or utility cost capping for small businesses
“We need policies that support business growth, not ones that push us further into hardship,” Dr. Obeng added.
Public Reaction and Support
The announcement by PURC has sparked widespread public outcry, with many social media users and civil society groups joining GUTA’s call for the suspension of the tariff hikes. Some have argued that utility providers must address inefficiencies and revenue leakages within their systems instead of burdening end-users.
A Call for Sustainable Solutions
GUTA is also urging the government to explore sustainable energy alternatives, such as solar and renewable energy, to reduce dependence on the national grid and lower operational costs in the long term.
“It’s time to think outside the box. Ghana cannot develop its economy on the back of struggling businesses,” Dr. Obeng concluded.
With Ghana’s economy still on the road to recovery, the rejection of utility tariff hikes by GUTA highlights a growing disconnect between regulatory decisions and the on-ground realities of Ghanaian businesses. Stakeholders are now watching closely to see if the PURC will review its decision or if more trade unions will join the resistance.
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