Small Business Owners in Wa Warn of Economic Strain as Utility Tariffs Rise

File Photo

Small business owners in Wa have raised concerns over the recent increase in electricity and water tariffs, warning that the new rates could hinder local economic growth. Mr. Osman Muhammed, a grinding mill operator along Wa Technical University Road, expressed his apprehensions to Info Radio, highlighting how the upward adjustment in utility costs threatens to escalate operating expenses and add pressure on already struggling small enterprises.

The Public Utilities Regulatory Commission (PURC) announced a 3.49% increase in electricity tariffs and a 0.85% rise in water tariffs, effective July 1, 2026. According to PURC, the adjustments are necessary to address economic factors such as inflation, currency fluctuations, fuel prices, and the financial sustainability of utility service providers.

However, Mr. Muhammed questioned the necessity of these increments, emphasizing that many Ghanaians are already grappling with economic hardships. He pointed out that fluctuating utility charges over the past year have created significant planning challenges for small business owners, impeding their ability to expand and sustain operations.

Mr. Muhammed appealed to government authorities and utility providers to reconsider the timing and magnitude of these increases, urging measures to ease the financial burden on consumers. He warned that continued rises in utility costs could jeopardize the survival of many small-scale enterprises that rely heavily on electricity, potentially stunting local economic development in Wa.