GUTA expected utility tariff reduction, not increase – Joseph Paddy

Vice President of the Ghana Union of Traders' Associations (GUTA), Joseph Paddy, has questioned the justification for the latest utility tariff increases, arguing that improving economic conditions should have led to lower charges rather than higher ones.

Speaking on Joy News on Tuesday, June 30, 2026, Paddy said traders were surprised by the announcement, stressing that GUTA was not consulted before the decision was made.

"We slept one night, woke up in the morning, and heard announcements that there was going to be a tariff increase, and we were like, 'Why, when we were not engaged?'" he said.

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According to him, stakeholder engagement is a critical part of good governance, especially when decisions have far-reaching consequences for businesses and consumers.

"For good governance, you need stakeholder engagement and participation. So, if you're going to increase tariffs, you need to engage stakeholders," he stated.

He further argued that the reasons cited by regulators to justify the tariff adjustment do not support an increase, insisting that the country's key macroeconomic indicators have all improved in recent months.

"In the letter, all the proposals they put in place, the fluctuation of the cedi and about four other issues they cited, we see they are all moving in a positive direction. If they are all moving in a positive direction, then why do you want to increase utility tariffs?" he asked.

He noted that the cedi has remained relatively stable against the US dollar in recent months, pointing out that the exchange rate has improved significantly compared to previous levels.

"Now we have stability of the cedi against the dollar. Today, when I checked, the exchange rate was about GH¢11.25 to one US dollar, which is a positive development. Once upon a time, it was around GH¢17 to one dollar," he said.

Paddy also cited declining interest rates as another reason businesses had expected utility costs to fall rather than rise.

"The interest rate has also dropped. Today, it's around 12%. The exchange rate has improved as well. So, putting all these factors together, we thought that if there was going to be any announcement at all, it should have been a reduction, not an increase," he said.

However, he maintained that the tariff adjustment has heightened concerns among traders, who believe the country's improving economic outlook should have translated into lower utility costs rather than higher ones.

ANAS/MA

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