Business News Wed, 17 Aug 2022

New utility tariffs will increase inflation – Prof. Gatsi

The Dean of the School of Business of the University of Cape Coast, Professor John Gartchie Gatsi, says the imminent increase in tariffs for water and electricity is going to have a significant impact on the country’s inflation rate.

The Public Utilities Regulatory Commission (PURC) on Monday, August 15, announced a 27.15% hike in tariff for electricity and a 21.55% hike in water tariff effective September 1, 2022.

The decision follows proposals made by the Electricity Company of Ghana and the Ghana Water Company Limited to increase their tariffs by 148% and 334% respectively.

Speaking to ATL FM NEWS, Professor Gatsi said a rise in Ghana’s inflation rate should be expected because of these increments in tariffs.

“Inflation rate will go up because there is a pass-through effect for the time that it is implemented from September 1, 2022, to about two-three months. So, it promises to increase inflation further,” he said.

Meanwhile, the Executive Secretary of PURC, Dr. Ishmael Ackah has assured Ghanaians that his outfit will continually monitor the activities and operations of the utility service providers to ensure that they provide value for money.

He said the quality service delivery of utility providers will also be closely monitored.

To this end, he said after this tariff review, the commission will implement its quarterly tariff review in line with its research and guidelines.
Source: atlfmnews.com
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