In the wake of countrywide hardships, culminating in calls for a rejection of recent increment in tariffs by the Public Utilities Regulatory Commission (PURC), management of the Electricity Company of Ghana (ECG) has expressed misgivings over the 59.2% increase in electricity, claiming it is inadequate to cause changes in the operations in the company.
The Public Relations Officer (PRO) of the ECG, William Boateng, yesterday in an interview on Asempa FM’s ‘Ekosii Sen’ show, said the company was not happy with how the PURC settled on the 59.2% increment in the electricity tariffs, particularly when they had submitted documents requesting major increase to facilitate better services to its customers. “But we did not receive what we requested…,” he hinted.
The ECG PRO insisted the percentage increase was not enough to solve the problems of the power distributor.
ECG, he said, would hold a press conference next week to explain to Ghanaians the tariff increase and its impact on the work of the company.
He added that ECG for the past two years has not received the level of increase they want to turn things around in their service to Ghanaians.
The PURC announced an increase in electricity and water tariffs by 59.2% and 67.2% respectively ahead of the Christmas season, to take effect from next Monday December 14.
According to the PURC, it took into account the concerns of all stakeholders and had refused the outrageously higher increment utility providers demanded.
In spite of that, the increment, since it was made public has attracted many concerns particularly in the era of Ghana’s energy crises, as some have even called for its postponement, until 2016.
One of such persons, vociferously opposing the increment is the Chief Executive of Consumer Rights Protection Agency, Mr. Kofi Kapito, who rather believes the hikes in electricity and water tariffs did not consider the interest of Ghanaians.
According to him, he was not expecting up to a 50% increment but rather 30% there about.
Consequently, The Industrial and Commercial Workers Union (ICU) have also described the tariff hikes unfortunate, claiming it gave a clear indication of a massive lay off in 2016.
Meanwhile, Ghanaians must brace themselves up for tough times in 2016 as government’s fiscal consolidation begins to take a bite, the Head of Standard Chartered Bank Africa Research, Ms Razia Khan has said.
Speaking to journalists in Accra, Ms Khan said government’s plan to trim the budget deficit to 5.3 per cent from an estimated 10.2 per cent is an indication of the high level of expenditure tightening that would take place in 2016.
The tightening and aggressive expenditure cuts coupled with increases in utility tariffs could make things difficult for Ghanaians, she said.
"It is certainly going to be a very tough year for Ghana; we don’t know if the fiscal consolidation being suggested can actually be achieved.”
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