“New utility tariffs could cripple livelihoods” – Brong Ahafo Businesses Coalition warns

The Brong Ahafo Businesses Coalition (BABC) has expressed deep concern over the recent utility tariff adjustments announced by the Public Utilities Regulatory Commission (PURC), set to take effect on May 3, 2025.

According to the PURC, electricity tariffs will increase by 14.75% while water tariffs will rise by 4.02%. The BABC describes this decision as not only insensitive but also a major threat to the survival of small and medium-sized enterprises (SMEs) in the Brong Ahafo region and across the country.

The Coalition which comprises corn mill operators, welders, hairdressers, cold store operators, fashion designers, media houses, and other essential service providers views the adjustment as a direct attack on livelihoods.

In a statement released on Wednesday April 16, 2025 and signed by the project Coordinator of the Coalition, Yeboah M. Mustapher, they warned that the tariff hike is likely force many businesses to scale down operations, lay off workers, or shut down entirely.

“In a time when the economic environment is already burdening the average Ghanaian business owner, such increases in operational costs are unsustainable and unjustifiable. The consequences of this tariff hike will be far-reaching.”

“Many SMEs operate on tight profit margins, and this sharp increase, especially the 14.75% rise in electricity costs will force many businesses to either scale down operations, lay off workers, or shut down entirely. For electricity-dependent businesses like cold stores, welding shops, fashion designers, media houses and corn mills, this change threatens their daily productivity and affordability. Water-reliant services such as hairdressing salons and food vendors will also be forced to raise prices, directly impacting consumers.” It states

The Coalition further stated that the tariff will discourage the youth from venturing into entrepreneurship and further deepening the cost of living in the country.

“These increases will inevitably lead to a rise in the cost of goods and services, further deepening the cost-of-living crisis faced by ordinary Ghanaians. It will also suppress creativity, discourage youth entrepreneurship, and widen the development gap between rural and urban communities.”

The Brong Ahafo Businesses Coalition emphasized that SMEs form the backbone of Ghana’s economy, contributing significantly to employment, local development, and national productivity. Burdening these businesses further could have dire ripple effects across communities.

The BABC is calling on the PURC to urgently reconsider this decision and to engage in broader consultations with stakeholders particularly grassroots businesses that are often left out of national dialogue. The Coalition also urges the government to pursue policies that support, not suffocate, local entrepreneurship.

Below is the full statement

BRONG AHAFO BUSINESSES COALITION CONDEMNS PURC’S RECENT UTILITY TARIFF INCREMENT

The Brong Ahafo Businesses Coalition (BABC) strongly condemns the recent upward adjustment in utility tariffs announced by the Public Utilities Regulatory Commission (PURC), which is set to take effect on May 3, 2025.

According to the PURC, electricity tariffs will be increased by 14.75%, while water tariffs will rise by 4.02%. This decision is not only insensitive but also threatens the survival of small and medium-sized enterprises (SMEs) within the erstwhile Brong Ahafo region and the country at large.

The Coalition, made up of corn mill operators, media houses, hairdressers, welders, cold store operators, fashion designers, and other essential service providers, views this adjustment as a direct attack on livelihoods.

In a time when the economic environment is already burdening the average Ghanaian business owner, such increases in operational costs are unsustainable and unjustifiable. The consequences of this tariff hike will be far-reaching.

Many SMEs operate on tight profit margins, and this sharp increase, especially the 14.75% rise in electricity costs will force many businesses to either scale down operations, lay off workers, or shut down entirely. For electricity-dependent businesses like cold stores, welding shops, fashion designers, media houses and corn mills, this change threatens their daily productivity and affordability. Water-reliant services such as hairdressing salons and food vendors will also be forced to raise prices, directly impacting consumers.

These increases will inevitably lead to a rise in the cost of goods and services, further deepening the cost-of-living crisis faced by ordinary Ghanaians. It will also suppress creativity, discourage youth entrepreneurship, and widen the development gap between rural and urban communities.

We wish to remind the PURC and all relevant stakeholders that SMEs form the backbone of Ghana’s economy. These businesses are not only vital sources of employment but also crucial to local development and national productivity. A sharp rise in utility costs places an undue burden on business owners already grappling with high inflation, unstable currency, and rising costs of raw materials.

The Brong Ahafo Businesses Coalition calls on the PURC to immediately reconsider this decision and engage in broader consultations with stakeholders, especially those at the grassroots level whose voices are often overlooked. We also urge the government to prioritize policies that support rather than stifle entrepreneurship and local industry.

Our businesses power communities.
Our services keep homes running.
Our voices will not be silenced.

Signed
Yeboah M. Mustapha
Project Coordinator

CONTACT
0246990191
0208356350

Source: Elvisanokyenews.net