Business News Thu, 12 May 2022

Timing for increase in utility tariffs uncomfortable – Hotels Association

ECG proposes 148% increase in tariffs

Electricity tariffs take between 9 and 15% of the operational costs of some of the hotels

News of increase in tariffs make my heart beat faster

President of the Ghana Hotel Association, Dr. Edward Ackah-Nyamikeh, has lamented the proposal by ECG and the Ghana Water Company to increase utility tariffs.

According to him, any increment in electricity and water tariffs will have great effects on the operational cost of businesses especially players in the hotel industry, since these utilities cover between 9 and 15% of their operational costs.

He however stated that PURC should take into consideration the fact that some businesses are still recovering from the woes of the COVID-19 pandemic.

“When I read about the adjustments that the Electricity Company of Ghana and Ghana Water Company Limited were asking for, my heart beat faster. Until this morning, I heard the Deputy Energy Minister suggest that the tariffs may not be increased, then I was a bit okay”.

“But even that, the onus lies with the Public Utilities Regulatory Commission (PURC), but the fact is that utilities (water and electricity) form a very crucial part of our business. As we speak, between 9 and 15% of the operational costs of some of the hotels are taken by electricity, and the lower percentage is taken by water”, he pointed out.

Dr. Ackah-Nyamikeh stated that even though, “we have enjoyed some stability in the electricity and water tariffs which we are very grateful for...the timing of this adjustment is very very uncomfortable”.

“We are trying to recover from the impact of COVID-19. Together with the other price hikes, with inflation going on, we will be hit with these proposed adjustments. We are likely to face serious challenges.”

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Source: www.ghanaweb.com
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