The Convention People’s Party has described the proposed tariff hikes by the water and power providers as unprecedented and draconian.
The CPP says it will kick against the proposals when the Public Utilities and Regulatory Commission (PURC) meets party members later Monday in its ongoing nationwide consultations.
New Patriotic Party has said the increases are unjustified.
On Joy FM’s current affairs programme Newsfile Saturday, Communications Director of the party, Nana Akomea suggested government should pay debts owed the utility companies instead of raising tariffs.
Government owes both the Volta River Authority (VRA) and power distributor, the Electricity Company of Ghana (ECG) some $500 million — being accrued cost of providing power to government Ministries, Departments and Agencies (MDAs). This according to VRA and ECG have stifled their ability to improve infrastructure.
The utility companies are requesting more than 100 percent increment in tariffs to keep their operations. They say this upward review for the cost of water and electricity would represent a realistic price for the services.
The Ghana Water Company Limited (GWCL) is seeking 124 percent increase in its tariff from GH¢1.78 for 120 gallons of water (5 barrels) to GHÈ»4 for 120 gallons of water.
When the increases being sought by ECG, VRA and GRIDCo are computed together, it will increase electricity tariff from 44-50 pesewas per kWh to 102-99 pesewas per kWh.
For electricity, ECG is seeking 101 percent increase; VRA wants 108 percent increase while the Ghana Grid Company (GRIDCo) seeks 31.26 percent.
However, both the CPP and NPP insist Ghanaians will not be able to pay these proposed tariffs due to the current economic situation.
Kwame Jantuah, an energy expert and a key member of the CPP has said increasing inflation, the falling cedi and other indicators that point to the poor health of Ghana’s economy have a direct bearing on the efficient provision of utility services.
He is suggesting that the current Petroleum Revenue Management Act be amended as soon as possible.
“The 70% of the oil revenue we put in the Consolidated Fund should be reversed to 30%. And the 40% should be put into a high interest account where we earn a good interest on it. So that when we have issues like these [debts], at least we can go into that account and pay for them,” he suggests.
By Myjoyonline.com
