According to the Ghana Chamber of Commerce and Industry, the decision to increase utility tariffs is shocking as already some companies have laid off workers as a result of irregular power supply.
Businesses are likely to fold up following recent increment in utility tariffs, President of the Ghana Chamber of Commerce and Industry (GCCI), Seth Adjei Baah has said.
According to him, the decision to increase utility tariffs is shocking as already some companies have laid off workers as a result of irregular power supply.
“We are shocked and surprised because as at now, most people are not breaking even and I know places people are contemplating shutting down. To raise electricity prices by over 50 percent and water by over 60 percent, tells us that we should stop doing manufacturing and fold our arms. It is quite unfortunate and we think it is indirectly collapsing our businesses," he told Accra-based Citi FM.
The Public Utility and Regulatory Commission Monday announced hikes in electricity and water tariffs.
Electricity has been increased by 59.2 percent while water has been adjusted by 67.2 percent.
This was however against a proposed increase of 128.6 percent by the ECG and a 400.2 percent increase by the Ghana Water Company Limited (GWCL).
Factors considered by the Commission before approving the increments are: Consumer Interest; Investor Interest; Economic Development of the Country; The Generation Mix; Fuel Mix; Availability of the Service; Growth in Demand; Power Purchase Cost (IPP); Revenue Requirement (to ensure Financial Viability of the Utility Service Providers); Cedi Dollar Exchange Rate
In spite of these reasons, Seth Adjei Baah said the move is rather unjustifiable, adding that “we are talking about consuming made in Ghana goods and it comes with prices; and these are the indications that are going to add up to the cost so that we do not become competitive. If that is happening, then we have a challenge on our hands.”