Utility tariff hikes may collapse our businesses – entrepreneurs
Some entrepreneurs in the Northern Region have expressed fear that the recent tariff increase might collapse their businesses.
The Public Utilities Regulatory Commission (PURC) recently announced hikes in utility tariffs with electricity going up by 27.15 per cent and water by 21.55 per cent to take effect from September 1.
Some of the business owners, who spoke to the Ghana News Agency in Tamale, said they were already faced with declining profit margins on their products and services and the implementation of the tariff would worsen their plight.
Mr Mohammed Yushaw Adarkwa, the owner of Moshawdarkwa Company Limited, a sachet water producing company in Tamale, said since 2020 utility bills had overwhelmed his business, making him run into losses.
He noted that he paid a minimum of GHc1,000 monthly as a water bill, depending on the number of sachets water produced, adding that sales were lower compared to the amount designated to utility cost.
Mr Adarkwa stated that utility tariff increment, coupled with the increased cost of production materials, posed a threat to the survival of sachet water production businesses.
He called on the authorities to reconsider their decision and reduce the percentages to make it a bit easier for businesses to keep running.
Afa Imrana Haruna, the owner of a washing bay at Fuo in the Sagnarigu Municipality, said the high fuel prices had already slowed patronage at washing bays because motorists preferred washing their vehicles to save money for fuel.
He said his business would be unable to thrive with the hike in utility bills and make it difficult to pay employees to meet the rising cost of living.
Households and individuals, who do not operate businesses, also shared their reservations over the increment with the GNA.
Miss Jane Andoh, a resident of Kalpohin, said a house of four tenants was billed over GHc150.00 monthly for water, which was too much since some tenants were unable to make full payment.
She said tenants who were not informed about the new utility tariffs might not comply and appealed to the government to support the citizens during these hard times.
Source: GNA