The (GUTA) has criticised the process leading to the latest utility tariff adjustments, arguing that the increases were implemented without adequate consultation with key stakeholders, contrary to the principles of good governance.
According to the association, meaningful engagement with businesses, consumer groups and other affected parties is essential before decisions that have significant economic consequences are taken. GUTA maintained that broad-based consultations help ensure transparency, accountability and public confidence in government policies.
The traders’ body expressed concern that the latest upward review of electricity and water tariffs will place an additional financial burden on businesses that are already grappling with rising operating costs, high inflationary pressures and a challenging business environment. It warned that the increases could erode the profitability of many enterprises, particularly small and medium-sized businesses.
GUTA noted that higher utility costs are likely to be passed on to consumers through increased prices of goods and services, further squeezing household incomes and potentially slowing economic activity. It stressed that any policy with such far-reaching implications should be preceded by discussions that allow stakeholders to present their concerns and propose practical alternatives.
The association said good governance is built on consultation, inclusiveness and consensus, adding that policies developed through stakeholder engagement are more likely to achieve their intended objectives while minimising unintended consequences.
GUTA therefore called on the relevant authorities to strengthen stakeholder engagement in future tariff reviews and ensure that business associations, labour groups and consumer representatives are actively involved in the decision-making process. It also urged policymakers to consider measures that would cushion businesses and consumers against the impact of rising utility costs while maintaining the sustainability of essential public services.
