Court Dismisses VRA�s Case Against CPA

An Accra High Court has dismissed an application by the Volta River Authority (VRA) urging it to throw out a suit filed by the Consumer Protection Agency (CPA) challenging the Public Utility and Regulation Commission (PURC) over its recent tariff hikes.

The court presided over by Justice Norvisi Aryene Dismissed the application by the VRA on grounds that the application sought by the applicants is a constitution issue.

The Electricity Company of Ghana (ECG) is the next entity to be heard as they have also filed a similar application to the court. Hearing has been adjourned to January 21.

Background

The CPA has sued PURC together with the ECG, VRA, the Northern Electricity Development Company and Ghana Grid Company Limited.

PURC has, however, filed a motion to set aside the case of CPA. The Chief Executive officer of the CPA is Mr. Kofi Owusuhene, popularly known as Kofi Capito.

The CPA is seeking an order of perpetual injunction restraining 1st defendant, its officials, assigns, privies, servants, any person claiming under or through it and howsoever described from increasing utility tariffs without publishing regulations in a constructional or statutory instrument as to the basis of the discretionary power as provided for by Article 296 of the 1992 Constitution.

The authority is seeking a declaration that the power 1st Defendant exercises in pursuant to Section 3(a) of Act 538 to provide guidelines on rates chargeable for provision of utility services which includes electricity tariffs, is discretionary pursuant to Article 296 of the 1992 Constitution.

CPA is further seeing a declaration that the power 1st Defendant exercises in pursuant to Section 3(a) of Act 538 to provide guidelines on rates chargeable for provision of utility services, which includes electricity tariffs, is discretionary pursuant to Article 296 of the 1992 constitution.

The authority is praying for a declaration that the decision o f 1st Defendant to approve 59.2per cent increases in electricity and 67.2 for water tariffs are unfair in the light of the persistent, irregular and unpredictable power supply.