GUTA urges PURC to suspend planned utility tariff increase

The Ghana Union of Traders’ Associations (GUTA) has called on the Public Utilities Regulatory Commission (PURC) to suspend its proposed increase in utility tariffs, scheduled to take effect on July 1, 2026, arguing that current economic conditions do not support such an adjustment.

In a statement issued on June 24, 2026, GUTA said the justification provided by the PURC for the tariff review does not reflect the prevailing economic situation and would place additional pressure on businesses and consumers already facing high operational costs.

The association noted that the reasons cited for the increment—including exchange rate movements, inflation, fuel prices, and the generation mix—have been repeatedly used to justify tariff adjustments in the past.

GUTA maintained that these factors, in their view, are not sufficient grounds for an increase at this time. “GUTA thinks that the above reasons do not represent the facts that warrant or justify any increment,” the statement said.

On exchange rate fluctuations, the association acknowledged a slight depreciation of the cedi between April and May but argued that the movement was not significant enough to justify higher utility charges.

It further pointed to inflation trends, indicating that the rate rose only marginally from 3.4 percent in April to 3.7 percent in May, which it said does not support a tariff hike.

GUTA also highlighted recent reductions in fuel prices, noting that petrol dropped by 9.3 percent and diesel by 1.7 percent during the second pricing window in June.

On electricity generation, the traders’ group argued that there are currently no major challenges affecting power supply, adding that “all the machines are working,” and therefore the generation mix should not be a basis for tariff increases.

The association warned that approving the proposed increase could have a ripple effect across the economy, raising production costs for manufacturers and ultimately pushing up the prices of goods and services.

“Based on the aforementioned, PURC has no justification for this tariff increment, as its implementation will further lead to high production costs for manufacturers, which will then translate into higher prices of goods and services,” GUTA stated.

GUTA further urged the regulator to focus on addressing inefficiencies and waste within utility companies, rather than relying on tariff adjustments as a primary means of revenue enhancement.

The association concluded by appealing to the PURC to reconsider and suspend the planned implementation of the tariff increase.

Prince Antwi

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