Businesses and manufacturers have warned that they will have no other option but to pass on any increase in utility tariffs to consumers.
The caution comes after the Public Unity Regulatory Commission (PURC), announced an increase in Water and Electricity Tariffs by more than 5 percent.
According to the PURC, the increment will take effect from July 01, 2024, to September 30, 2024.
Speaking to Joy Business, the Greater Accra Regional Chairman of the Association of Ghana Industries (AGI), Tsonam Akpeloo said consumers will have to brace themselves to pay more for goods and services.
He pointed out that manufacturers are unable to bear the increasing cost of production due to the unfriendly business environment.
“Certainly, someone must pay for this cost. Somebody must pay. The issue now is to be able to determine whether we are able to shift this cost to the consumer”.
He added that the periodic utility tariff adjustment is a disincentive to businesses already struggling to stay afloat.
Background
The PURC had explained that, the reviews have been undertaken in line with the Commission’s Quarterly Tariff Review Mechanism.
It stated that the exercise tracks and incorporates movements in key uncontrollable factors, namely the exchange rate between the US$ and the Ghana Cedi, domestic inflation rate, the electricity generation mix, and the cost of fuel, mainly natural gas.
“The Commission wishes to announce that, there will be 3.45% increase in electricity tariffs for lifeline consumers (0-30kWh); 5.84% increase for all other residential consumers who are not part of the lifeline category bracket (31 kWh and above) as well as the non-residential category. The industrial category will experience an increase in electricity tariffs of 4.92%”, it said.
Water Tariffs will experience an increase of 5.16% for all customer classes for the period under review,” a press release dated May 31 said.
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