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General News of Tuesday, 15 December 2015

Source: classfmonline.com

CPA suit leaves tariff hikes in limbo

Kofi Kapito Kofi Kapito

The tariff increases expected to take effect from Monday, December 14, 2015, are not being implemented yet, Class News can confirm.

Last week, the Public Utilities Regulatory Commission (PURC) announced a 59% and 67% increase electricity and water tariffs, respectively, but Class FM’s checks have revealed that the new rates are not being charged yet.

Class FM’s Nabil Ahmed reported that checks with the Electricity Company of Ghana revealed the new rates have not yet taken effect.

This is because the CEO of the Consumer Protection Agency, Kofi Owusuhene, popularly known as Kofi Capito, has filed a suit against the PURC (1st defendant), Volta River Authority (2nd defendant), Northern Electricity Development Company (3rd defendant), Ghana Grid Company Ltd (4th defendant) and the ECG (5th defendant), seeking to restrain them from implementing the recent upward tariff adjustment, as far as power is concerned.

Mr Capito stated in his suit that the power stakeholders have failed to live up to expectations and, so, prayed the court to place an injunction on the implementation which was expected to take effect from December 14, 2015.

The CPA is praying the court for “a declaration that the decision of the 1st defendant to approve a 59.2% increase in electricity tariffs is unfair in the light of the persistent irregular and unpredictable power outages pejoratively known as ‘dumsor’.”

It also prayed the court for “an order setting aside the 59.2% tariff increase in electricity announced by the first defendant for the benefit of 2nd, 3rd, and 4th defendants as being illegal and invalid.”

Because of the suit, the increase cannot take effect until the matter has been dealt with by a court of competent jurisdiction.