Ghanaians will be reeling under intense pressure to live and survive after utility service providers shockingly demanded 200% increase in electricity and water tarrifs.
Citizen are already struggling to pay their bills and buy decent food which prompted President Nana Akufo-Addo to call for the reduction in electricity tariff.
Now the utility companies in a shocking displaying of disobedience have defied the President's call and are demanding an increase of about 200 percent.
The companies, who are currently meeting the Public Utility Regulatory Commission (PURC) in a Joint Consultative forum in Accra, are bent on taking the massive hikes to the Ghanaian public.
Speaking to Citi Business News, the Chairman of the Technical Committee of the PURC, Ishmael Egyekumhene, said the situation needs careful assessment as government has already promised a reduction in electricity tariff.
Mr. Egyekumhene said cost is a major factor in considering the total revenue requirements.
“We are looking critically at the cost right from generation to transmission and distribution. If we are only to base the analysis on exchange rate and inflation, there is every justification for the tariffs to go up,” he added.
Gov’t reduces electricity tariff by 14% for non-residential users
President Nana Addo Dankwa Akufo-Addo had on January 15, 2018, announced an average of 14% reduction in electricity tariffs for non-residential users in the country with effect from January 2018.
“From January this year, the non-residential tariff rate, which is the rate which includes all of you here, is being reduced by an average of 14%. For barbers, it is being reduced by 18%; for hairdressers and beauticians, 15.7%, and for tailors, 9.8%,” he added.
Government had earlier recommended to the Public Utilities Regulatory Commission (PURC) to reduce electricity tariffs in the country.
It promised to reduce electricity tariffs by between 13 and 21 percent for residential consumers and industry respectively.
The PURC’s meeting with stakeholders in the sector was to among other things negotiate and determine a reduction in tariffs for businesses.
Gov’t can’t recommend reduction in power tariffs -Wereko-Brobby
Former Chief Executive Officer (CEO) of the Volta River Authority (VRA), Dr. Charles Wereko-Brobby, was one of the people who accused government of trying to usurp the mandate of the Public Utilities Regulatory Commission (PURC), by announcing a reduction in electricity tariffs.
According to him, government could make proposals to the regulatory body about a possible reduction in the tariffs, citing possible changes in the cost of production.
He added however that, the final say on any adjustment of the tariffs should come from the PURC devoid of any pressure from the government.