Business Associations criticise PURC over power tariff increases
A coalition of leading business associations in Ghana has condemned the Public Utilities Regulatory Commission (PURC) for approving new electricity tariff increases, describing the decision as “anti-business, anti-growth, and fundamentally flawed.
The coalition, made up of the Food and Beverages Association of Ghana (FABAG), the Ghana Union of Traders Association (GUTA), and the Ghana Plastic Manufacturers Association, expressed outrage at what it called the “relentless” tariff adjustments that continue to drive up the cost of doing business in the country.
Speaking on behalf of the coalition, the Executive Chairman of FABAG, Rev John Awuni, argued that the prevailing pricing regime is unjust and counterproductive.
“The current regime punishes honest businesses and users in general and rewards inefficiency. When electricity becomes unaffordable, it becomes a target for illegal access. We are fast creating a society where honest business owners are punished while defaulters and illegal users thrive,” Rev Awuni said.
According to the associations, the ever-rising cost of electricity is forcing many manufacturers, particularly small and medium enterprises (SMEs) and energy-intensive industries such as cold storage facilities and factories, to scale down operations, lay off workers or transfer additional costs to already burdened consumers.
They further contended that honest Ghanaians are being made to shoulder the cost of mismanagement, corruption and inefficiency within the power sector.
The coalition argued that the disproportionate tariffs imposed on productive sectors contradict the government’s own industrialisation agenda and make local production uncompetitive compared with imports.
Rev Awuni cautioned that raising tariffs without addressing the sector’s internal inefficiencies would not yield lasting results.
“No amount of higher tariffs can sustainably compensate for the inefficiency, mismanagement, poor revenue collection, bad debts, poor workers’ attitude and corruption in our utilities. Pursuing tariff increases without fixing internal problems is like pouring water into a leaking bucket,” he asserted.
The coalition called for urgent and comprehensive reforms in the power sector, urging the government and the PURC to focus on structural improvements rather than burdening consumers.
It further called for a full audit of the actual cost of power production and distribution, a simplified and transparent tariff structure that rewards efficiency and productive use, and urgent relief measures for businesses, particularly those in manufacturing and agribusiness.
The coalition also demanded a stronger crackdown on internal waste and corruption within the power sector, beyond targeting illegal connections, and the implementation of measurable cost-cutting strategies at the operational level.
The statement also appealed to President John Mahama to intervene and prevent the power sector from further undermining economic recovery efforts.
“Electricity must empower, not impoverish,” Rev Awuni added.
