Gov't Against Utility Tariffs Increase

The government would announce its intervention in utility prices to mitigate the impact on the most vulnerable consumers on tomorrow, Thursday.

A statement by the Minister for Information and Presidential Affairs, Jake Obetsebi Lamptey, said the President would address the issue at the commissioning of the Second Electricity Bulk Supply Point at Mallam, in Accra.

The Ghanaian Government expressed regret that the Public Utilities Regulatory Commission (PURC) announced increases in utility prices without exhausting the consultation process with government.

According to government, an agreed meeting between the PURC and the Ministers of Finance, Energy and Works and Housing was not honoured by the Regulatory Commission. "The government concedes that PURC has the legal authority under Act 538 of 1997 to determine and set tariffs and was not subject to the direction or control of any person or authority in the performance of its task.

"However, as a major stakeholder and the ultimate owner on behalf of the people of Ghana, the government has the right to expect that there would be full consultations. The PURC on Monday approved 60 and 40 per cent increases in electricity and water tariffs, respectively.

Under the new tariff for electricity, which was to take effect in August 2002, lifeline consumers, who consume up to 50 units a month were to pay a block charge of 14,000 cedis up from the previous 7,800 cedis.

Meanwhile, the Smart Chigabatia Smart Chigabatia has described the new increment in electricity and water tariffs as "unrealistic and unduly high for the civil servant."

"The minimum wage of civil servants is a mere compensation for the shortfall of inflation during the year and could not cover his other expenses, let alone the new increases."

Mr. Smart Chigabatia, who was speaking in an interview on the current increase in electricity and water rates with the GNA said in view of the increase, the issue of the worker to earn "a living wage" has been brought to the fore.

He said there was the need for government to ensure equity in the system regarding the salary structure and should introduce better incentives for civil servants to increase productivity and generate more income.

Mr. Chigabatia said the CSA would draw government's attention to that effect and possibly negotiate for adjustments. "Civil servants are guided by labour laws that make it possible for salary negotiations and we expect that government would make it possible for civil servants to pay their tariffs". Should government refuse to sit at the negotiating table with the CSA, the issue would have to be forwarded to Parliament.

The CSA boss is of the view that since Ghana was a democratic state; government should compromise with the CSA to adjust salary levels to reflect the realities of the times. He said government should have held series of public education concerning the new increment in tariffs for the enlightenment of the public.

In a related development The Trades Union Congress (TUC) met late on Tuesday to consider the effect of the increases on workers, industry and how other economic indicators would respond to the new tariffs.

Reports say the TUC was to ascertain its position on the tariffs increases since its representative on the PURC was yet to brief the TUC leadership for it to have aggregate views of workers. The meeting would however, afford the executive committee of the Union the opportunity to define its position and take a collective decision as well.

Meanwhile, there was mixed reaction from the public on the tariff increases. While some felt that the increases were justified, they hold the view that there is the need for a proportionate improvement in the quality of service delivery to satisfy consumers.

There were others who felt that if the inefficiencies in the delivery of services were corrected, and then the increases would be justified.