Western Region businesses fearing the worst after utility tariff increases

Western Region Businesses Unhappy With Recent Tariff Increases

Business operators in Ghana's Western Region are unhappy. They are frustrated with the recent hikes in electricity and water tariffs. The Public Utility Regulatory Commission announced these increases. Electricity tariffs will rise by 14.75%. Water tariffs will increase by 4.02% starting May 5, 2025.

Many businesses fear these hikes will hurt their operations. Higher costs may lead to layoffs for some workers. Charles Arthur runs a washing bay in Effiakuma, near Sekondi-Takoradi. He worries that increased tariffs will force him to raise prices for customers.

Arthur stated, "No businessman wants to hear about tariff increases." He has not raised his prices in a long time. However, he feels he must pass on the costs to customers. This could scare them away.

Arthur employs 19 workers but is less concerned about water tariffs. His area often lacks running water, so he uses a borehole instead.

The media industry is also worried about the impact of higher electricity costs. Alexander Nii Sackey manages an urban radio station in Takoradi. He spends around GH¢8000 monthly on electricity alone.

Sackey said, "We cannot shut down the station." He mentioned that advertising revenue has decreased significantly. If costs continue to rise, it will be challenging for his business.

He called on the government to support businesses instead of increasing tariffs regularly. Sackey also suggested considering solar power as an alternative energy source due to ongoing power cuts.

Cold store operators share similar concerns about rising electricity rates affecting their businesses negatively.