Utility price hikes will make cost of living extremely high – Joseph Paddy

The Ghana Union of Traders Association (GUTA) has bemoaned the recent hikes in water and electricity tariffs, warning that the increases will intensify the financial burden on citizens and further weaken their purchasing power.

The Public Utilities Regulatory Commission (PURC) announced on Saturday, 28 September 2024, that electricity tariffs will rise by 3.02 per cent, with water tariffs increasing by 1.86 per cent for the third quarter of 2024, effective October 1.

The commission cited exchange rate fluctuations, inflation, and rising gas prices as the key factors driving the decision.

GUTA’s Public Relations Officer, Joseph Paddy, challenged the justification for the tariff hikes, particularly in light of the ongoing economic difficulties faced by many Ghanaians.

"The new tariff is not justifiable. That [the new tariff] is a result of increasing gas prices and also interest rates and exchange rates going up. Who caused the exchange rate to go up? And that is what the fiscal committee has been complaining about—the instability in the system," Mr. Paddy said.

He emphasised that the new tariffs would worsen living conditions for Ghanaians already grappling with high costs of living.

"It is going to make the cost of living in the country extremely difficult for Ghanaians and very high," he warned.

Paddy also criticized the timing of the adjustment, stressing that the increases come at a critical moment when the public is already struggling economically.

“Already, Ghanaians are complaining that the cost of living is extremely high in the country. And then, coupled with that, we are bringing this increase at this critical moment. Even the timing is also a challenge,” he added.

GUTA is urging the government and the PURC to reconsider the tariff hikes, taking into account the growing economic hardship facing the country.

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