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Business News of Saturday, 8 February 2014

Source: myjoyonline.com

AGI demands advance notification of future tariff increases

The Association of Ghana Industries (AGI) is demanding advance notice of future tariff increases from utility regulator, Public Utilities Regulatory Commission (PURC).

The Association argues that advance notification will help various industries plan and prepare budgets ahead of time.

PURC currently adjusts tariffs automatically for every quarter but Tema regional chairman of the AGI, Charles Mensah says surprise increases in tariffs hamper growth of businesses.

Mr. Mensah was speaking at a meeting with the PURC on quality of service and the automatic adjustment of tariffs.

"There is gradual and reasonable increase in energy pricing but we need to know this before the year begins. Government or PURC can come out and tell us that industry expects a 50% energy price increase next year and we will then factor this into our budget," he said.

The AGI regional chairman was of the view that if the association does not have knowledge of such plans "and then we wake up one morning and hear that utility prices have been increased then you create a problem for us because we have not budgeted for that."

He lamented that, "We are in a country where incomes are so low and because incomes are so low, there is a limit to which we can increase our prices."

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