Minority expresses worry about Tariffs increment

New Water And Electricity Tariff Adjustments For Consumers
New Water And Electricity Tariff Adjustments For Consumers Image Source: coverghana.com.gh

The Minority Caucus in Parliament has expressed woe about the increase in utility tariffs by the Public Utilities Regulatory Commission (PURC).

The PURC on Monday announced a 27.15 per cent increase in tariff for electricity and a 21.55 per cent increase in water tariff effective September 1, 2022.

This comes after utility companies including the Electricity Company of Ghana and Ghana Water Company Limited proposed an increase in tariffs by 148 per cent and 334 per cent, respectively.

PURC, however, explained that the decision was arrived at after rigorous analysis and extensive consultations with industry players, as well as an assessment of the economic conditions of consumers.

A statement signed by Mr John Jinapor, Ranking Member on Parliament’s Mines and Energy Committee and copied to the Ghana News Agency on Tuesday said the tariff increment would only exacerbate the current high cost of living.
It said: “The increase will also worsen the plight of the already impoverished Ghanaian.”

“Before the electricity tariff increments, petroleum products at the pumps witnessed a colossal increment of about 100 per cent. So far, the Energy Debt Recovery Levy has seen an increase of 20 per cent; the Price Stabilization and Recovery Levy is up by 40 per cent.

“The Unified Petroleum Pricing Formula has been increased by 164 per cent, whilst the BOST margin has been increased from three pesewas to nine pesewas representing a 200 per cent increase. As if this is not enough, the fuel marking margin levy has also been increased by another 233 per cent,” it said.

The statement explained that this was against the background that the volume of petroleum products consumed had increased by 35 per cent from four billion litres to 5.5 billion litres.

“We are of the strongest conviction that Government can and must do something to cushion Ghanaians who are going through unimaginable hardships with ever-worsening poverty levels under the Akufo-Addo/Bawumia-led government,” it said.

The statement also interpreted that the 27 per cent increase in electricity did not apply to every consumer.
It added that a critical look at the tariff structure as announced revealed that all residential consumers who felt between the 0-300 kWh bracket had witnessed a price increase from GHp/kWh 65.4161 to GHp/kWh89.0422, representing an increment of almost 34 per cent.

“It should be noted that the bulk of residential consumers fall within the 0-300 kWh bracket and will therefore be adversely affected by the 34 per cent adjustment,” it noted.

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