GUTA calls for immediate suspension of PURC utility tariff hike

The Ghana Union of Traders' Associations (GUTA) has called on the Public Utilities Regulatory Commission (PURC) to suspend its planned utility tariff increase scheduled to take effect on July 1, 2026, arguing that current economic conditions do not justify the adjustment.

According to the association, the reasons cited by the PURC for the proposed increase do not reflect prevailing economic realities and could further burden businesses and consumers already grappling with high operating costs.

In a statement dated June 24, 2026, GUTA challenged the basis for the tariff review, noting that similar explanations have been used repeatedly over the years whenever utility tariffs are adjusted.

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The association said the PURC attributed the proposed increment to factors such as exchange rate fluctuations, inflation, fuel costs and the generation mix.

However, GUTA maintained that these factors do not warrant a tariff 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 movements, the association acknowledged that the cedi depreciated between April and May but argued that the extent of the depreciation was not significant enough to justify a tariff hike.

It also pointed to inflation data, noting that the rate increased only marginally from 3.4 percent in April to 3.7 percent in May.

The traders' body further observed that fuel prices declined during the second pricing window of June, with petrol prices falling by 9.3 percent and diesel prices dropping by 1.7 percent.

Regarding power generation, GUTA argued that there are currently no major challenges affecting electricity production.

"On the issue of generation mix, there is no problem, as all the machines are working," the association stated.

GUTA warned that implementing the tariff increase could have a ripple effect across the economy by raising production costs for manufacturers and ultimately leading to higher prices for 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," it stated.

The association also urged the regulator to focus on addressing inefficiencies and waste within utility companies rather than relying on tariff adjustments to boost revenue.

"What PURC must be concerned about is the inefficiencies and waste within the utility companies so that they can perform better and improve their revenue assurance, instead of always resorting to tariff increments," GUTA said.

The association therefore appealed to the PURC to reconsider its decision and suspend the implementation of the planned tariff adjustment.

"GUTA therefore calls on PURC to halt the implementation," the statement concluded.



NA/MA

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