PURC to TUC: Reducing tariffs will plunge utility providers into crisis

The Public Utilities Regulatory Commission (PURC) says there is nothing it can do to beat down the recent tariff hikes as demanded by the Ghana Trades Union Congress (TUC).

The Commission’s Director of Public Affairs, Nana Yaa Gyantuah, told XYZ News on Wednesday on the sidelines of a forum held by the PURC that reversing the new tariffs will amount to plunging the country into crisis.

“The tariffs cannot be withdrawn; it has been gazetted”, She told XYZ News Reporter Osei Owusu Amankwah.

According to her, “…If we are going to do anything about this tariff like bringing it downwards, then it means that we are going to see a crisis ahead of us”.

As far as she is concerned, the new tariffs are aimed at averting a crisis in the utility industry.

She insisted there will be “some crisis in the utilities” and added that the increases that have been granted the service providers are to forestall any such eventuality.

The TUC, on Tuesday, gave the Government of Ghana a 10-day ultimatum to reduce by one-third, the 78.9 percent and 52 percent increments in electricity and water tariffs, which took effect from October 1, 2013 or face the wrath of labour.

State power producer, Volta River Authority (VRA), requested a tariff increment of 137.5%.

Power transmitter, Ghana Grid company (GRIDco), which conveys power from the VRA and other generating companies to bulk customers such as the Electricity Company of Ghana (ECG), submitted proposals for an upward tariff adjustment of 39.36 percent.

The ECG which distributes power to homes and businesses requested a 166% increase in electricity tariff across board while the Ghana Water Company demanded an increase of 99.39%.

However, the Public Utilities Regulatory Commission (PURC) beat down the proposals to 78.9 percent for electricity and 52 percent for .water respectively, after various meetings with the service providers.

The TUC intends rolling out a series of industrial protests, including strikes, if the Government fails to accede to its demand within the ultimatum.