The Minister of Trade and Industry, Ekow Spio Garbrah, is exasperated with the Public Utilities Regulatory Commission (PURC), over the recent increases in utility tariffs saying they are harsh and could cripple businesses.
The Public Utilities Regulatory Commission (PURC), in December 2015, increased electricity and water tariffs by 59.2% and 67.2%, respectively, forcing organised labour to pile pressure on government to reduce the increases.
Both domestic and industry consumers of water and electricity have lamented the effects of the increases on them. Mr. Spio Garbrah says the increases are adversely affecting businesses in the country.
“ You may think you are doing a good job by just raising revenue but you are killing the businesses that are going to bring jobs and help to create broader income and exports of the economy.”
According to the Minister, his ministry was not consulted by the PURC to have their inputs before the increases were announced.
[contextly_sidebar id=”4tUwLo7josMUcWCKvd28AhasZzV4QHtB”]“We ourselves as the Ministry of Trade and Industry consider ourselves to be a stakeholder in the broad economy as well as on matters that affect businesses but at no point have we been called to come before the Public Utilities Regulatory Commission or any other public agency that wishes to revise its rate to discuss the basis of which the rates are being revised, the potential impact it will have on the broad economy; because as they say killing the goose that is laying the golden egg.”
Some businesses have laid off workers due to the high cost of operating, as a result of the increases in tariff, at a time when power was not constantly available.
Speaking to journalists during a familiarization tour in the Volta Region, the Trades Minister said the increments could have been done in phases to lessen its effects.
“It is curious that many of these charges are coming in the first month of an election year. You will wonder whether if a utility rate has to go up by 150% why did it not go up by 20% two or three years ago, 30% last year and maybe 40% this year to more or less achieve the same objective. Why have some of these institutions waited for an election year and all of a sudden we hear incredibly outrageous rates; 57%, 100%, 400% all the way to ordinary water that human beings drink,” he noted.
Mr. Spio Garbrah further charged the Association of Ghana Industries (AGI), the Ghana Chamber of Commerce and Industry to hold the PURC accountable for the hikes and seek “more comprehensive explanation for the basis for these increases.”
Gov’t reduces electricity tariffs 45%, 50% for ‘poor’
His comments a day after government agreed to reduce electricity tariffs to 45% and 50% for lifeline consumers and vulnerable groups.
The relief simply means that all consumers who use between 0-50 unit, will have 45% increase in their electricity tariffs while the 51-300 band will have 50% increase instead of the 59.2%.
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By: Godwin A. Allotey/citifmonline.com/Ghana