Ghanaians urged to reject tariff increment proposed by utility service providers

The Centre of Posterity Interest Organization (COPIO) has called on the government to reject the ‘extreme’ tariff increment proposed by utility companies in the supreme interest of Ghanaians.

COPIO is a Techiman-based Non-Governmental Organisation (NGO) and an alliance of rural community women, youth, children, and the aged who work together to combat sexual and gender-based violence, advocate equity in governance, and promote inclusive public empowerment.

It called for comprehensive efficiency reforms within the utility service sector like improved metering systems, reduction of transmission and distribution losses, as well as stronger accountability mechanisms.

The NGO made the call in a statement issued and signed by Mr Mustapha Maison Yeboah, the Executive Director and copied to the Ghana News Agency (GNA) in Sunyani.

It said: “Our statement is in reaction to some state-owned utility service providers having submitted proposals to the Public Utilities Regulatory Commission (PURC) seeking significant tariff adjustments to sustain their operations, improve infrastructure and sustain and ensure long-term service delivery”.

They include the Electricity Company of Ghana (ECG), Ghana Water Company Limited (GWCL), Ghana National Gas Company (Ghana Gas) and the Ghana Grid Company Limited (GRIDCo).

The statement however indicated that the proposed increments would drastically increase the cost of production for local businesses, especially small and medium enterprises (SMEs) that were already struggling under high inflation, currency depreciation, and limited access to credit.

It said: “Higher utility costs will undermine Ghana’s competitiveness within the ECOWAS sub-region, making local products less attractive and potentially collapsing many businesses”, saying it would also have a negative impact on households.

“Utilities are not luxuries; they are necessities for modern life, and those steep increases will translate into unbearable bills for ordinary households.

Women, who are the primary managers of households, will face heightened financial strain as they balance food, education, and healthcare needs with inflated utility costs”, it added.

The statement indicated that: “Vulnerable groups, including low-income earners and the elderly, risk being pushed deeper into poverty, further widening inequality”.

“COPIO believes policies must safeguard the future, not mortgage it. Imposing such steep burdens today risks stifling innovation, discouraging entrepreneurship, and creating long-term socio-economic setbacks for the next generation”, it stated.

It noted that the financial difficulties facing ECG, GWCL, Ghana Gas, and GRIDCo stemmed not only from tariff inadequacies, but also from inefficiencies in revenue collection, technical losses, corruption, and weak governance structures.

“Without addressing these systemic inefficiencies, merely passing the burden onto consumers will not yield sustainable solutions”, the statement said, and urged the government to support businesses through incentives like targeted subsidies for SMEs and renewable energy adoption to cushion them against energy shocks.

It also called on the government to protect vulnerable households, particularly women-led households, by expanding lifeline tariffs and ensuring affordable access to water, electricity, and gas encouraging renewable energy investments and sustainable water management as medium-term strategies to diversify the nation’s energy mix, reduce dependency on costly thermal generation.

“So, the proposed tariff increments are excessive and inconsistent with the nation’s socio-economic aspirations”, it added and called on the government to intervene and ensure that utility tariffs remain affordable, while businesses remain competitive.

Source: GNA

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