Consumers question legitimacy of tariff increases

Hohoe, April 4, GNA - Participants at a public hearing in Hohoe on proposed utility hikes, have agreed overwhelmingly for price increases by the utility service providers, but questioned the legitimacy of their percentage target demands.

They suggested a moderation or gradual down-scaling of the percentage targets towards achieving their strategic goals in the medium to long-term basis.

The participants queried why the utility providers failed to address their financial problems, which spanned four decades and were now trying to offload the financial malaise to the consumer. They added that that decision could be interpreted in political parlance as "trying to make the ruling government unpopular." Participants demanded accountability and assurance in terms of quality, quantity and affordability, factoring in the current economic situation of the country.

They called for decentralization of operations of the Public Utility Regulatory Commission (PURC), the organizers of the public forum, to bring them close to consumers.

Togbe Gboxo I, Chief of Gboxome said the percentage increases demanded by the utility service providers were not realistic compared to percentage trends in salary increments.

He said the erratic power outages, high tariffs to connect utility lines, and intimidation suffered at the hands of staff of utility providers as nuisance to service delivery.

Volta River Authority (VRA), which generates electrical energy, was demanding 115 percent malaise increment; with the Ghana Grid Company (GRIDCO), which transmits the power, requesting for 173 percent hikes. The Electricity Company of Ghana (ECG), responsible for distributing power is demanding 109 percent while Ghana Water Company Limited (GWCL) is asking for 28 percent and 39.2 percent increases for domestic and commercial consumers.

Representatives of VRA, GRIDCO, ECG and GWCL gave assurances to participants that consenting to pay the percentage increases was a guaranteed declaration for reliable, regular, qualitative and sustained service delivery.

They indicated it would afford them the chance to make prudent investments, reduce debts portfolios and save them from grinding to halt with its dire consequences for the economy.

Dr Emmanuel Andah, a Commissioner of PURC said ACT 538 of the Commission gives it a legal mandate to examine, provide guidelines, regulate tariffs with consultation with stakeholders especially consumers. He said PURC, as an independent organisation would aggressively protect consumer interest working closely with licensing authorities. Dr Andah announced that PURC would begin to enforce penalties on utility providers who are non-conformist and failed to meet standards. Making cases for their companies were, Mr Ebow Acquah, Manager, Sales Contracts, VRA; Mr Eric Asare, Director, Systems Operations, GRIDCO; Mr Joseph Yankey, Chief Manager, Corporate Planning/ICT, GWCL, and Dr Nicholas Smart-Yeboah, Director, Customer Services ECG.

Participants comprised identifiable groups, representatives of consumer groups, traditional authority, individuals, public and private institutions.