Residents of Winneba in the Central Region of Ghana have voiced their dissatisfaction over the recent increase in utility tariffs, noting that it will have a detrimental effect on their businesses.
In an interview with Joycelyn Derban of Xtrememediaonline on Thursday, April 17, most residents cited the Smart MMS-compliant prepaid meters, which were introduced last year, as an already existing problem for them.
They lamented that the new meters have led to increased prepaid purchases and warned that the higher utility tariffs will further increase their financial burden.
Jane is a resident and businesswoman who sells chilled water and drinks, and she explained to Xtrememediaonline how this increase in utility tariff is going to affect her business.
“The increase in the electricity tariff is going to affect us, because our old meters have been changed, and that has been a problem. And so if they increase the electricity bill, I sell pure water and drinks, which are kept in the fridge for three to four days to get chilled. I will be buying prepaid for those four days, but my goods will still be in the fridge.”
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Doris is in a similar business as Jane, and she corroborated the plights Jane shared with the increase in utility tariffs.
“We spend a lot on prepaid after the introduction of the new meters. This increase will take a toll on my finances because the profit I get in my business is less than the prepaid I buy, and so it is worrying.”
Kofi Dagati, a local barber, noted that despite the recent utility tariff hike, he cannot immediately pass on the costs to his customers by raising prices, given the nature of his services. As a result, the increase will likely impact his business. He plans to absorb the costs until the end of the year, after which he intends to adjust his pricing accordingly.
“With the nature of my work, I can’t increase prices just because there has been an increase in utility tariffs because I might lose my customers. I will have to find innovative ways, like getting more chargeable machines, to minimize cost.”
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Meanwhile, Emmanuel Amawu, who is also a resident, believes that the increase in utility tariffs is something that is already in existence. To him, even though the increment will affect his monthly budget, it is for the best, as this is meant to improve the provision of electricity and light.
“Every government increases the prices of goods and services, and this is done so that there will be a smooth supply of water and electricity, so this is justifiable, as the increase is reasonable. I plan to manage the use of electricity in my home in such a way that my utility bill might even be less than what I used to pay.”
However, he suggests that this increment might not favor everybody, and so, just like the others, they plead with the government for a reasonable decrease to make life comfortable for everyone.
The Public Utilities Regulatory Commission (PURC) announced an increase in utility tariffs for all consumer categories on April 11, 2025.
The announcement revealed a 14.75% increase in electricity tariffs and a 4.02% hike in water tariffs.
The commission justified the adjustment, citing its quarterly tariff review mechanism, which considers four key factors: the Cedi-US dollar exchange rate, inflation, electricity generation mix, and fuel costs (primarily natural gas).
The commission explained that this move aims to ensure accurate revenue collection, preventing both over-recovery and under-recovery of costs.