The Ghana Union of Traders’ Association (GUTA) has fiercely criticized the Public Utilities Regulatory Commission (PURC) following its decision to increase utility tariffs, describing the move as unjustifiable and symptomatic of deeper structural issues within Ghana’s utility sector.
Effective May 3, 2025, electricity tariffs will rise by 14.75%, while water charges are set to increase by 4.02%. This announcement has sparked widespread discontent, with GUTA at the forefront of opposing the changes. The association argues that tariff hikes are not only ill-timed but also fail to address the inefficiencies and mismanagement plaguing utility service providers.
In a strongly worded statement signed by its General Secretary, Alpha A. Shaban, GUTA dismissed PURC’s rationale for the increases as weak and out of touch with the harsh economic conditions faced by businesses and households.
“We acknowledge that change is inevitable, but it must be justified and not imposed arbitrarily by any single entity,” the statement declared.
A System in Disarray
GUTA highlighted numerous inefficiencies that have burdened utility service delivery, including inflated procurement costs, poor debt recovery mechanisms—particularly from state institutions—and the persistent issue of illegal connections. These inefficiencies, the association noted, have led to unnecessary financial losses and ultimately passed onto consumers.
The association also criticized PURC for its failure to enforce strict oversight of utility providers, which has resulted in widespread corruption and mismanagement. GUTA pointed to the unresolved case of over 1,000 missing containers belonging to the Electricity Company of Ghana (ECG) as evidence of systemic failure. Some of these containers, they alleged, were intercepted in the Central Region, while others were found in private premises in Tema.
“There is a glaring failure to ensure value for money,” the statement said, adding that the lack of accountability has allowed public funds to be siphoned into private pockets.
Call for Reforms
GUTA is calling for urgent reforms in the utility sector, urging PURC to shift its focus from imposing financial burdens on consumers to tackling corruption and inefficiencies within the system.
“If the PURC were truly stringent in its oversight, much of the wastage caused by theft, corruption, and poor management would have been eliminated,” the statement asserted.
GUTA further demanded a comprehensive audit of utility operations, with the aim of identifying and addressing inefficiencies that inflate costs unnecessarily. The association emphasized the need for greater transparency and accountability to restore public trust and ensure fairness in utility pricing.
A Wake-Up Call for PURC
The statement concluded with a stern warning: unless these systemic issues are addressed, Ghanaian businesses and households will continue to suffer under the weight of unjustified financial demands.
As the debate over utility tariffs intensifies, GUTA’s call for reforms underscores the growing frustration among consumers who feel the costs of inefficiency are being unfairly shifted onto their shoulders Will the PURC heed this call and implement the much-needed changes, or will the burden on consumers persist? Only time will tell.
Read GUTA’s full statement below:
Story by: Mercy Addai Turkson #ahotoronline.com
