Hoteliers will decide on new rates after considering the impact of new utility tariffs on their operations, the Ghana Hotels Association President, Dr. Edward Ackah-Nyamike Jnr, has said.
He added that the decision will be made by end of this year, after also ascertaining how best customers can be cushioned.
Households and businesses this month will face a steep increase in their electricity and water tariffs – of 27.15 percent and 21.55 percent respectively – as the Public Utilities Regulatory Commission (PURC) has approved the increments effective September 1, 2022; and tariffs will now see adjustments every quarter.
The Commission said the increment was necessitated by an unfavourable exchange rate, the rising cost of gas for electricity generation, and chemicals for water treatment among others.
In a conversation with the B&FT, Dr. Ackah-Nyamike Jnr said given the current circumstances, each hotel is likely to decide on a new rate after considering the effect on its activities.
“No, not that immediate. We will check the actual impact and how best the customer can be cushioned before taking any such decision. Rates are determined by individual hotels. The Association has no hand in that at all. But the statement is a general reference to what the hotels are likely to do under these circumstance,” he said.
In an earlier interview with the B&FT, he noted that about 30 percent of hotels’ expenses are the result of water and electricity tariffs and any upward adjustment could take a toll on the industry.
“Indeed, putting water and electricity together you are looking at between 15 percent to about 25 percent of our expenses. Some can even go as high as 30 percent,” he said.
New utility tariffs
The new tariffs adjustment means that lifeline residential electricity consumers (0-30 kilowatt per hour) will now pay 41.90 pesewas instead of the earlier 36.20 pesewas.
All other residential consumers will pay a tariff of between 89.04 pesewas per kWh and 128.39 pesewas per kWh.
Businesses, small and medium-sized enterprises consuming electricity of 0-300kWh will pay 83.78, with those consuming electricity between 300kWh to 600kWh and above paying 89.15 to 133.09 pesewas.
Residential consumers of water will pay a new tariff of 4 pesewas per metric tonne from the earlier 3.29 pesewas, while non-residential consumers will pay 11.21 pesewas. Commercial users will pay between 15 and 49 pesewas per month.