The Ghana Hotel Association has described the timing of the proposed utility tariff adjustments as wrong, as businesses are lamenting the expected increases in the tariff.
According to Dr. Edward Ackah-Nyamikeh, President of the Ghana Hotels Association, operational costs of members are expected to go up significantly if the tariffs are approved, taking into consideration that the players are just recovering from the impact of COVID-19.
“When I read about the adjustments that the Electricity Company of Ghana and Ghana Water Company Limited were asking for, my heart beat faster. Until this morning, I heard the Deputy Energy Minister suggest that the tariffs may not be increased, then I was a bit okay”.
“But even that, the onus lies with the Public Utilities Regulatory Commission (PURC), but the fact is that utilities (water and electricity) form very crucial part of our business. As we speak, between 9 and 15% of the operational costs of some of the hotels are taken by electricity and the lower percentage is taken by water”, he pointed out.
Dr. Ackah-Nyamikeh, further added that any significant increase in utility tariffs will impact severely on the business.
Frankly speaking, he said “we have enjoyed some stability in the electricity and water tariffs which we are very grateful for. But I think the timing of this adjustment is very very uncomfortable”.
“We are trying to recover from the impact of COVID-19. Together with the other price hikes, with inflation going on, we will be hit with these proposed adjustments. We are likely to face seriously challenges.”