No justification for tariff hikes amid wastage – GUTA fires at PURC

The Ghana Union of Traders’ Associations (GUTA) has expressed strong opposition to the recent utility tariff increases announced by the Public Utilities Regulatory Commission (PURC), describing the decision as ill-timed and unjustified.

In a statement, the association questioned the rationale behind the upward review, arguing that the reasons provided by PURC do not sufficiently justify the move.

GUTA acknowledged that periodic adjustments may be necessary, but emphasized that such changes must be grounded in transparency, efficiency, and public interest—not imposed arbitrarily.

“For us, these reasons do not hold water. We appreciate that life is not static, and changes are inevitable when they are necessary, but not at the whim of any particular body.”

According to the union, widespread inefficiencies in the management of electricity and water services continue to plague the sector. These include inflated procurement costs, poor revenue collection—particularly from government institutions—illegal connections, and weak enforcement mechanisms.

GUTA also criticized the failure of the regulatory body to rigorously monitor and evaluate the operations of utility providers.

The statement pointed to recent reports about over one thousand missing ECG containers, some allegedly found at private locations, as an example of the systemic lapses and lack of accountability that continue to affect the sector.

GUTA believes that if these inefficiencies and cases of mismanagement were addressed, much of the lost revenue could be redirected to support local industries, reduce production costs, and help stabilize the economy.

“It is an open secret that there are a lot of wastages in the management of electricity and water,” GUTA noted.

“If indeed the PURC is strict on the management of these utility service providers… such wastages due to stealing and related cases could have been halted,” it added.

The union warned that the public sector is increasingly seen as a means for personal enrichment, a trend they say undermines national development efforts.

The association urged government to intensify efforts to combat corruption in public institutions, recover lost state assets, and collaborate with stakeholders to harness the country’s vast resources more effectively.

GUTA maintained that with proper leadership and accountability, Ghana can overcome its current economic challenges and achieve meaningful growth.