Clement Boateng, the President of the Ghana Union of Traders’ Associations (GUTA), has opposed the Public Utilities Regulatory Commission (PURC) propose tariff hikes.
The GUTA president stressed that Ghana’s current economic conditions do not justify PURC’s tariff hike.
According to the GUTA President, one of the key justifications cited for the tariff adjustment was the depreciation of the Ghana cedi against major foreign currencies.
He, however, noted that the extent of the depreciation was relatively modest and should not have warranted the increase.
Clement Boateng argued that GUTA is not opposed to tariff reviews in principle, acknowledging that utility service providers require adequate resources to sustain their operations.
The GUTA President, however, highlighted that the reasons cited by PURC for the latest increases do not reflect the realities of Ghana’s current economic situation.
Speaking in an interview on Joy FM’s midday news on June 25, the GUTA President argued, “It is not about simply opposing tariff increases because we all know that utility companies need money for their operations. What we are saying is that when you examine the reasons they have provided, the current situation does not support the basis for these increases”.
“It is true that the exchange rate has experienced some depreciation recently. Between April and May, the average depreciation was about 4.18 per cent. We believe this is insignificant and does not call for an increase in utility tariffs,” he stated.
Also, the Minority in Parliament has rejected the Public Utilities Regulatory Commission’s (PURC) proposed tariff adjustments planned from July 1, 2026.
The Deputy Ranking Member on Parliament’s Energy Committee, Collins Adomako-Mensah, says the PURC utility tariff hikes do not make mathematical sense.
According to the Minority in parliament, they expected utility tariffs to be reduced by about 6 per cent, arguing that the proposed upward adjustment would place an additional burden on households and businesses.
Collins Adomako-Mensah also highlighted that the proposed tariff adjustment contradicts reports that quarterly increases in utility tariffs were part of the IMF programme agreement entered into under the former Akufo-Addo administration.
Speaking to Citi News, the Deputy Ranking Member on Parliament’s Energy Committee, Collins Adomako-Mensah, stated, “How does just a change of exchange rate of 0.2% push you to increase electricity by close to 4%? It just does not add up. And I’m surprised that PURC is doing this to us. I’m totally surprised. Cumulatively, they’ve increased electricity by 31.69% from January 2025 to date.
“It was just the first and second quarters of this year that they reduced it by 4%. Even that, we challenge that. I’m surprised that PURC is doing this to the Ghanaian people. This particular increment, based on the figures that we’ve seen, does not make mathematical sense to me at all,” he said.
His comments come on the heels of the PURC announcing an upward adjustment in electricity and water tariffs.
According to the PURC, consumers are set to pay more for utility services from July 1, 2026, with electricity tariffs increased by 3.49 per cent across the board, while water tariffs have been adjusted upward by 0.85 per cent.
The PURC disclosed that the adjustments were made in line with its mandate to undertake quarterly tariff reviews.
The Commission, the adjustments reflect changes in key economic indicators, including the cedi-to-dollar exchange rate, inflation, the electricity generation mix, and the cost of natural gas used in power generation.
In a statement issued on Monday, June 22, PURC explained that the quarterly adjustments are intended to maintain the real value of tariffs and ensure that utility providers deliver reliable services to consumers.
@ghnow_ A family spokesperson has stated that the condition of Sarah Adwoa Safo is currently “50/50,” adding that she has begun to show signs of swelling following the incident. #GHNow #fyp ♬ Sad – Max-Music
