Audio By Carbonatix
The Minority Caucus in Parliament has vehemently opposed the recent utility tariff hikes, demanding an immediate reversal and labelling the policy as a "symptom of failed leadership" rather than a genuine reform measure.
George Kwame Aboagye, the Ranking Member on Parliament’s Energy Committee, used a press conference today, Monday, December 8, 2025, to warn that the cumulative effect of the hikes would be catastrophic for Ghana’s economy and its citizens.
The NPP MPs believe that, “These tariff hacks are not reforms they are punishment they are not solutions they are sentence of failed leadership and poor policy choices.”
Mr. Aboagye articulated a stark five-point breakdown of the immediate and long-term consequences should the government fail to heed the call to withdraw the tariff increases on water (over 15%) and electricity (around 9%).
- Escalating Utility Poverty: He warned that the increases would exacerbate the cost-of-living crisis, “leaving more families unable to afford basic electricity.” This exacerbates energy poverty, particularly in low-income communities already struggling with economic hardship.
- Collapse of SMEs: The backbone of Ghana's economy—Small and Medium Enterprises (SMEs)—will face collapse “due to unbearable operating costs.” Data indicates that SMEs account for approximately 70% of Ghana's GDP and represent a significant portion of total employment, making their collapse a systemic economic threat.
- Job Losses and Unemployment: The heightened operational strain will inevitably lead to “Job losses as industries scale down or shut down operations.” Mr. Aboagye pointed to the already alarming rate of youth unemployment in the country, noting that job losses from the industrial sector would only intensify this crisis.
- Reduced Competitiveness: The rising cost of power and water will “reduce productivity and competitiveness further weakening the economy.” Ghanaian goods and services will become more expensive relative to regional competitors, negatively impacting exports and manufacturing output.
- Heightened Social and Economic Hardship: The final outcome, he argued, would be a deepening of suffering: “heighten social and economic hardship deepens the suffering of workers and households.”
Mr. Aboagye concluded his address with a scathing condemnation of the government’s policy choice, insisting that the reliance on consumer price increases demonstrates a failure to address systemic inefficiencies within utility providers like the Electricity Company of Ghana (ECG) and the Ghana Water Company Limited (GWCL).
The Minority's firm position is that the government must pursue internal efficiency measures and address financial leakage, technical losses, and overcapacity payments—estimated by some analysts to cost the nation millions of dollars annually—before shifting the burden onto consumers. The caucus has pledged to use every tool at its disposal to force a policy reversal.
Latest Stories
-
Fuel prices set to rise again from Sept 1; petrol could hit GH¢16.21 – COPEC
13 minutes -
REGSEC restricts Akwasidae celebrations in Denkyira amid security concerns
18 minutes -
Eric Adjei distributes free fertiliser to farmers in Jaman North
25 minutes -
Akufo-Addo urges NPP factions to unite behind Bawumia for 2028 victory
36 minutes -
NDC mourns Western Regional Elections Director Papa Assan
43 minutes -
Minerals Commission warns against fake job recruitment schemes
50 minutes -
10 recruits dismissed for defying phone ban – Interior Minister
56 minutes -
IEAG commends GoldBod, BoG for improving forex stability
1 hour -
Bawumia donates GH¢50,000 to St Jude Catholic Church at Weija
1 hour -
Mahama calls for faster mobilisation of AU Peace Fund resources
1 hour -
Improved roads bring new vehicle options to Tumu-Bolga, Tumu-Tamale, Tumu-Wa routes
1 hour -
Cedi records 7.9% depreciation against US dollar in first half of 2026
2 hours -
GIS launches operation on anti-human trafficking and exploitative street begging
2 hours -
Awutu-Senya District Assembly organises clean-up ahead of Awubia Festival
2 hours -
Vice President Opoku-Agyemang receives Democracy Cup
2 hours