The Brong Ahafo Businesses Coalition (BABC) has expressed concern that the recent decision by the Public Utilities Regulatory Commission (PURC) to increase utility tariffs presents a significant threat to both businesses and the livelihoods of many individuals.
According to BABC, the hike is a heavy burden that will strain businesses, drive up operating costs, and ultimately affect consumer prices.
The BABC — consisting of corn millers, media outlets, hairdressers, welders, cold storage operators, fashion designers, and other vital service providers — sees this tariff hike as a direct attack on their livelihoods and survival.
The Coalition urges the PURC to recognise the far-reaching impacts of these new tariffs and come out with fair and sustainable solutions that support economic stability and the well-being of all.
Below is BABC’s press release as they raise critical concerns and weigh in on the urgent issues affecting businesses and households:
BRONG AHAFO BUSINESSES COALITION (BABC)
April 16, 2025.
FOR IMMEDIATE RELEASE
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 prioritise 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
Story: Kwabena Kyekyeku
