Politics

Increment in utility tariffs not justified – Minority

The Minority on Parliament’s Mines and Energy Committee has described as unjustified, the recent increase in tariffs especially that of power.

This follows the 11.17 percent increment in electricity tariff and an 8.01 per cent increment in water tariff, as announced by the Public Utilities Regulatory Commission (PURC).

Speaking to Citi News, the ranking member of the committee, Adam Mutawakilu said the tariff hike is not in the interest of Ghanaians.
“The NPP must get it clear. Anything we say is based on conditions existing at that time. So, if conditions change, you don’t expect us not to factor it in our decision making. We proposed an increase but in the course of the year, certain events had happened and we thought that at worse, the tariffs should remain the same. It is not justified looking at the factors.”

“If last year, the cost of fuel was a significant part of determining the reduction in power tariffs. In 2019, we are through our oil revenue giving away through two billion to reduce the gas price. Why the increase? Ghanaians are losing revenue that could be put into infrastructure, paying more for tariffs and we think this should not be the case”, he noted.

PUWU demands further increase in utility tariffs

The Public Utilities Workers Union (PUWU) has also asked the Public Utilities Regulatory Commission (PURC) to approve higher tariffs that would help sustain companies within the country’s power distribution chain.

Although the increment has been met with some opposition from consumers and industry players, PUWU says the increment is not enough to save utility providers from their current struggles.

The General Secretary of the Union, Michael Adumata Nyantakyi told Citi News, their expectations for a rise in utility tariffs have not been met and are therefore demanding for an upward adjustment.

“PURC is just dancing around the problem and is not really tackling the issue. As workers, we are also consumers and affected by these increases. But the reality is that, we are looking at how these companies will be able to operate in a manner that will help us make the needed impact. We are making sure that from the political angle, we don’t create a hullabaloo. In fact, the representations that were made both by GWCL and PDS are not the kind of tariffs that have been approved.”

|Citi Newsroom

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