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Electricity tariff hike unlikely to impact prices of goods and services – GNCCI

 The Ghana National Chamber of Commerce and Industry (GNCCI) has indicated that the recently announced increase in electricity tariffs is unlikely to affect the prices of goods and services.

This comes after the Public Utilities Regulatory Commission (PURC) announced a 2.45% increase in electricity tariffs across all consumer categories, effective July 1, 2025. The adjustment follows the Commission’s routine quarterly review. Meanwhile, water tariffs will remain unchanged for the third quarter of the year.

Speaking to Citi Business News, GNCCI CEO, Mark Badu-Aboagye downplayed the impact of the increment, describing it as minimal.

What we are looking at is that if there is a further improvement in the key variables, we expect the tariffs for businesses to eventually be reduced,” he said.

He added: “Electricity costs per kilowatt hour in Ghana are already quite high, so an additional 2.45% increase will certainly raise production costs. However, I don’t believe this will result in a significant rise in prices.”

Meanwhile, two civil society organisations, CUTS International Accra and the Center for Environmental Management and Sustainable Energy (CEMSE), have jointly called on the PURC to suspend its planned electricity tariff adjustment.

The groups argue that the proposed tariff increase is unjustified given recent improvements in Ghana’s macroeconomic conditions.

The civil society groups cited the appreciation of the Ghanaian cedi against the US dollar and declining inflation rates both key variables in the tariff-setting formula.

In a statement signed by the West African Regional Director of CUTS International, Appiah Kusi Adomako and the Executive Director for CEMSE, Benjamin Nsiah criticised PURC for failing to align its tariff review with current economic realities. They insist that consumers had expected a downward revision, not an increase.

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