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Businesses shocked at utility price hikes

Seth Adjei Baah  - GCCI

The Ghana Chamber of Commerce and Industry (GCCI) has described as shocking, the decision by the PURC to increase prices of utility.

The President of the Chamber, Seth Adjei Baah in an interview with Citi Business News said,

“We are shocked and surprised because as at now, most people are not breaking even and I know places people are contemplating shutting down.”

The PURC on Monday announced a 59.2 percent and 67.2 percent increase in the prices of water and electricity respectively.

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).

Industry players as well as the Trades Union Congress (TUC) had opposed the move saying it will be untimely for the commission to increase utility prices without an improvement in the quality of service to customers.

Mr. Adjei Baah also feared the move is likely to compel businesses to collapse,

“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.”

PURC reasons unjustified

According to the PURC, it put into consideration a number of factors including cedi dollar exchange rate, growth in demand, consumer interest and availability of the service among others before going ahead with the increment.

But Seth Adjei Baah insists the reasons notwithstanding, the move will make businesses uncompetitive,

“We are talking about consuming made in Ghana goods …. It comes with price 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 at our hands” he observed.

By: Pius Amihere Eduku/citifmonline.com/Ghana

Ghana Business News