Chief Executive of Consumer Rights Protection Agency, Kofi Kapito, says Monday’s hikes in electricity and water tariffs did not consider the interest of Ghanaians.
Mr Kapito said although the hikes were expected, the 59.2% increase in electricity and 67.2% for water are too high.
“I was not expecting more than fifty percent. I was expecting 30 percent,” Mr Kapito said on PM Express news analysis programme Monday evening.
The PURC on Monday announced hikes in both water and electricity tariffs at a combined rate of 126.4%, prompting fierce public outcry.
The Industrial and Commercial Workers Union (ICU) has described the tariff hikes unfortunate. The ICU believes the hikes would soon result in lay-offs.
The changes are expected to take effective from December 14, 2015.
A statement signed by Nana Yaa Jantuah Director of Public Relations at the PURC noted, “the significant change and increasing dependency on thermal generation has greatly impacted on the cost of electricity generation and supplied by the Utility Service Providers.
“For Water Utilities, the adjustment in tariff is driven by Chemical Cost in addition to the Power Purchase Cost and Operation and Maintenance Cost for the Ghana Water Company,”
The PURC admitted that the increments were also necessitated by proposals it received in the middle of 2015 from utility service providers asking for an upward adjustment in tariffs.
However, speaking on PM Express Kofi Kapito said the PURC is not justified in announcing the new tariffs considering the current situation at the utilities front.
“The PURC has abandoned its other responsibility which is the welfare of the consumer. Every consumer wants value for money. If you say from Monday, we are going to pay these utility increases, where is the value for money?” the Consumer Rights Protection Agency CEO said.
He believes the current levels would strain incomes of Ghanaians and prove counter-productive to business growth.
Source: Myjoyonline.com
