Keep tariffs predictable, cut costs over time — GNCCI to PURC
The Ghana National Chamber of Commerce and Industry (GNCCI) has downplayed concerns that the recent 2.45 percent increase in electricity tariffs will significantly impact the prices of goods and services in the Ghanaian market.
In response to public outcry and warnings from civil society groups over the implications of the tariff adjustment, the Chamber indicated that the marginal nature of the increment is unlikely to cause a ripple effect on market prices.
Chief Executive Officer(CEO) of the GNCCI, Mark Adu Aboagye, explained that while businesses remain highly sensitive to changes in production costs, particularly electricity, this particular increase is too small to trigger major price hikes.
“The scale of the increase is not significant enough to warrant an immediate review of prices. What the business community is more concerned about is not necessarily one-off increments, but rather the need for consistency and predictability in utility pricing,” he said.
Mr. Aboagye, however, acknowledged that electricity remains one of the biggest cost drivers for businesses in Ghana, especially for manufacturers, service providers, and other energy-dependent sectors.
He noted that even though the 2.45 percent rise adds to the cost burden, market forces may absorb the change in the short term without sharp increases in consumer prices.
“What we are looking at is that subsequently, if there’s a better improvement in the key variables, the PURC will begin to reduce tariffs for businesses. Already, the cost per kilowatt-hour for electricity in Ghana is very high. So, even though this increase adds to production costs, it is unlikely to lead to significant price jumps,” the GNCCI CEO stated.
According to him, the ongoing macroeconomic improvements, particularly the recent appreciation of the cedi and other favorable conditions, should translate into relief for businesses over time.
“We have seen some improvement in the exchange rate. The cedi is appreciating, and other conditions are improving as well. This is a positive sign, and we hope these gains will be factored into future pricing decisions,” Mr. Aboagye noted.
The GNCCI is also encouraging the Public Utilities Regulatory Commission (PURC) and other relevant agencies to continue engaging with industry players on tariff reviews. Mr. Aboagye stressed the importance of inclusive and transparent consultations to ensure that the broader implications of such decisions on business sustainability are taken into account.
“As a Chamber, we are not against price reviews, but they must reflect prevailing economic realities and be implemented in a way that doesn’t compromise business competitiveness,” he added.
