Utility tariff increase will cripple businesses – AGI

The Association of Ghana Industries (AGI) has expressed disappointment at the Public Utilities Regulatory Commission (PURC) for announcing an upward adjustment in utility tariffs.

Effective June 1, 2023, the cost of water services will see an upward adjustment for all consumer groups whiles electricity and natural gas is also expected to go up by 18.36%.

In an interview with Citi Business News, the Greater Accra Chairman of the Association of Ghana Industries, Tsonam Cleanse Akpeloo said this development has the propensity to stifle the growth of local industries.

“The recent announcement in just less than six months of increment in utilities is really a big shock for us. We are extremely disappointed in the regulator’s work. Our view is that this is not welcome. We had wished that we would have been consulted further,” he said.

“What this increment means is that we will witness another significant rise in the cost of production, and it makes businesses uncompetitive in the face of the African Continental Free Trade Agreement where all of us are expected to be very competitive in the sub – region.”

“And it is really unfortunate as most of our businesses are actually contemplating closing down as a result of this increment in utility tariffs,” he indicated.

Source: Ghana Business

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