The Association of Ghana Industries (AGI) has urged the Public Utilities Regulatory Commission (PURC) to reconsider its recent decision to raise utility tariffs for the third quarter of 2024.

According to the new rates, electricity prices will increase by 3.02%, while water tariffs will rise by 1.86%, effective from October 1.

PURC has justified the upward adjustments by citing fluctuations in the exchange rate as the primary reason for the hike.

However, the AGI is concerned about the impact these tariff increases will have on industries and the broader economy.

The Greater Accra Regional Chairman of AGI, Tsonam Akpeloo, expressed these concerns during an interview with Citi FM on Monday, September 30.

He explained that the rise in utility costs will significantly raise operational expenses for manufacturers, making it harder for industries to remain competitive.

Akpeloo also pointed out that the tariff hikes could reduce consumers' purchasing power, further straining businesses and stalling economic growth.

He urged the PURC to reconsider the decision, taking into account the potential negative effects on industrial growth and the wider economy.

“We’re asking the regulatory authority to be concerned about the flight of index and ensure that at least in the next quarter, they either take steps to reduce it or maintain it at the previous rate because this increment is not going to be going well for industrial development.”

“As I mentioned, it would be a price that will easily have to be absorbed by the producer, because at this rate, we cannot push it to the consumer. A lot of companies are really getting out of business because of these high levels of utility tariff,” he said.