AGI, GUTA warn tariff hike could undermine 24-Hour economy rollout

The Association of Ghana Industries (AGI) has raised alarm over the recent 2.45% increase in electricity tariffs, warning that the adjustment could derail the successful implementation of the government’s 24-hour economy policy.

The Public Utilities Regulatory Commission (PURC) announced the increment earlier this week, citing exchange rate fluctuations, inflationary pressures, rising fuel prices, and higher operational costs as key factors behind the decision.

However, speaking to Citi News, Greater Accra Regional Chairman of AGI, Tsonam Akpeloo, said the timing and magnitude of the hike are concerning, especially for businesses expected to run extended hours under the new policy.

“If you’re talking about a 24-hour economy, you’re asking industry to work beyond the usual eight hours and continue through the night. That means higher electricity consumption. The cost of power will increase—possibly doubling what we’ve previously paid,” he noted.

“A 2.5% increase under normal production is one thing, but with extended hours, the actual cost impact will be far greater,” Akpeloo added.

The Ghana Union of Traders Association (GUTA) echoed similar sentiments, cautioning that the tariff hike would inevitably translate into higher consumer prices.

GUTA President Dr. Joseph Obeng warned that businesses have little choice but to pass on the additional costs.

“This time, we won’t just keep talking. For instance, plastic manufacturers have had their taxes raised to 7% and they’ve already announced price increases. That’s what we’re going to see more of,” he said.

“This is a cost issue—if operational costs go up, product prices will also go up. It’s that simple.”

Both AGI and GUTA are calling on the government to re-evaluate the economic impact of rising utility costs, particularly as it prepares to roll out policies aimed at boosting productivity and lowering the cost of living.

The 24-Hour Economy policy, a flagship initiative of the National Democratic Congress (NDC), is set to be launched today, Wednesday, July 2.

It seeks to promote round-the-clock operations in sectors such as manufacturing, health, transportation, and retail, with the aim of reducing unemployment and stimulating national growth.