By: Sarah Baafi
The planned reduction in utility tariffs, with electricity set to decrease by 4.81% and water by 3.06% starting April 1, is expected to provide significant relief for businesses and producers across Ghana.
Speaking on the GTV Breakfast Show, Prince Ntiamoah Boampong explained that even modest reductions in utility costs can have a substantial impact on production expenses and business operations.
“When you look at production individually, electricity and water costs play a very big role. Even a 4.5% reduction can make a meaningful difference for producers,” he said.
Prince Boampong highlighted that the reduction is not only financially beneficial but also provides psychological relief amid global economic pressures, particularly the fluctuations in crude oil prices.
“It’s important to prepare our minds for these changes. While we cannot control global events, such as what is happening in Iran, the reductions help ease the pressure locally,” he noted.
He also drew attention to the broader economic impact of utility adjustments, explaining that a 10% change in tariffs in a month could generate between GH¢40 million and GH¢150 million in revenue.
“The benefits to producers depend largely on production volumes and how efficiently they use these utilities,” he added.
Prince Boampong praised the Public Utilities Regulatory Commission (PURC) for the timely intervention, stating that the upcoming tariff reductions are a step in the right direction for both the economy and the welfare of producers.
With the new tariffs taking effect from April 1, Ghanaian businesses can anticipate some relief in production costs while remaining mindful of ongoing exposure to global economic pressures.
