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Business News of Thursday, 10 October 2013

Source: Charles Addo

Media, PURC must resist VRA - Group

The Forum for Progressive Ghana (FPG) a human interest group, is calling on the media, civil societies and well meaning Ghanaians to resist the Public Utilities Regulatory Commission (PURC) in approving what they described as “the dictates of the VRA” to overburden Ghanaians with astronomical tariffs increase.

The Western Region based forum in a statement said "businesses, commercial and industrial players have had their cost of operations and services going up astronomically, domestic consumers have resorted to the use of less refined power sources like charcoal and candles due to the hikes".

The forum also argued that corruption in government has created avenue for inefficiencies and ultimately culminating to huge increases in utility tariffs.

Below is the full statement

PUTTING THE FINAL NAIL IN THE COFFIN OF GHANAIANS – PURC MUST RESIST VRA The Forum for Progressive Ghana (FPG) has learnt with extreme surprise the attempts by the Volta River Authority (VRA) to compel the Public Utilities Regulatory Commission (PURC) to increase further the tariffs for electricity consumption of Ghanaians.

Speaking to journalist at the briefing of the state of the Aboadze thermal plant, the Public Relation Officer (PRO) of VRA Mr. Samuel De-Graft Johnson, indicated that the VRA and government are currently discussing the possibility of increasing the over bearing increment of utility tariffs further.

The PURC recently approved the highest ever upward adjustment for tariff of 78.9 % for Electricity Power consumption and 52.0 % for water in Ghana. This increment, should the John Dramani Mahama led NDC government acquiesce to the whims of VRA, would see a further increment of electricity supplied for domestic, commercial and industrial use.

The Forum for Progressive Ghana (FPG) is humbly calling on all Civil Societies, Political Parties, Religious Bodies and Media to implore on the PURC to resist the temptation of approving to the dictates of the VRA.

Ghanaians are yet to come to terms with the current huge increment in prices of these basic utilities. While businesses, commercial and industrial players have had their cost of operations and services going up astronomically, domestic consumers have resorted to the use of less refined power sources like charcoal and candles. Others may resort to illegal connections to further aggravate the production losses of VRA.

The FPG appreciates the need to pay “realistic” prices to sustain the huge investment required in the production of electricity power, however, the continuous passing unto the poor consumer all the inefficiencies and corrupt practices of some members of the company as part of the cost of production must not be accepted.

The Trade Union Congress has come out to complain about the inability of its members to pay the recent astronomical increases in utility prices. The TUC says unless their employers return to the negotiating table with workers to consider a commensurate upward review of salaries and other emoluments to cushion workers, the payment of such huge prices for utilities cannot be acceptable.

The Secretary General of the Trades Union Congress, Kofi Asamoah has stated that the TUC has served notice to the government informing the PURC to halt the billing of electricity consumers with the newly approved tariff increments or risk the declaration of strike action.

The Association of Ghana Industries (AGI) has lamented the negative impact of such huge increases in utility tariffs and call for a gradual increment in order to ensure effective planning and budgeting.

The Progressive Peoples’ Party led Coalition including the Forum for Progressive Ghana; the United Youth Against corruption, The Young Patriots and other political parties were on the streets last week to register their displeasure against institutional corruption that creates the avenue for inefficiencies and ultimately culminating to huge increases in utility tariffs.

Any additional tariff increment would be literally putting the final nail in the coffin of Ghanaian industry, commercial and domestic consumers of these basic utilities.

The PURC must implore on the VRA to provide a road map on how VRA intends to plug the about 25% power generated that is unaccounted for, the illegal connections and the corrupt practices of some of its officials and the streamlining of procurement contracts. This would help alleviate the plight of Ghanaians paying such unacceptably high utility tariffs.

Signed: • Adam Badaru , President • Joseph Nana Kofi Akomeah, Gen. Sec. • Adu Clement, P. R. O. • Korankye Ezekiel Agyensem, Research Director