Increment in utility tariffs won’t help industrial growth

The Association of Ghana Industries (AGI) has called on the Public Utilities Regulatory Commission (PURC) to reconsider its decision to increase utility tariffs for the third quarter of the year.

Starting October 1, electricity rates will rise by 3.02%, while water tariffs will see a 1.86% increase.

PURC attributed the tariff hikes to fluctuations in the exchange rate.

Speaking with Citi Business News in Accra on Monday, Tsonam Akpeloo, the Greater Accra Regional Chairman of AGI, expressed concern that the increases would raise operational costs for manufacturers and diminish consumers’ purchasing power.

“We’re asking the regulatory authority to be concerned about the flight of index and ensure that at least in the next quarter, they either take steps to reduce it or maintain it at the previous rate because this increment is not going to be going well for industrial development.”

“As I mentioned, it would be a price that will easily have to be absorbed by the producer, because at this rate, we cannot push it to the consumer. A lot of companies are really getting out of business because of these high levels of utility tariff,” he said.