Gov't Supports Increase In Utility Tariffs

The planned increase in tariffs by the Electricity Company of Ghana (ECG) and the Volta River Authority has the support and approval of government. Energy Minister, Albert Kan Dapaah in a swift change of position affirmed government's support for the tariff increment at an ECG workers forum in Takoradi. In attempt to appear sympathetic to the plight of the suffering mass of Ghanaians, the Minister advised the Public Utility Regulatory Commission (PURC) to restrict the increases to cover only cost, which would enable the utility services to operate efficiently.

Mr. Kan Dapaah in April opposed the increment saying that "under no circumstances shall we permit the passing on of the utilities to consumers. We opposed the over 300 percent increases last year. And that is why I find it preposterous, the ridiculous demand for about 250 - 300 percent being bandied around by the utilities today" he said at the launch of a national energy efficiency awareness campaign.

The public are also against the increments, the second since the coming into office of the Kufuor government. Some have argued that living wages have not gone up in commensuration with last year(quote)s increments, and the rates being proposed now.

The ECG is proposing an increase from 196 cedis/ kWH to 313.6 cedis/kWH, whiles the VRA wants an increase from 194 cedis/kWH to 478 cedis/kWH.

Consumers have generally criticized the utility companies including the Ghana Water Company, because of the poor quality of services provided, with very little efforts at improving.

A statement signed by Public Relations Officer of ECG, Florence Boakye said the Minister also expressed government’s expectation that any increase granted would lead to clear improvement in quality and service delivery. He said government would further support the process by providing funds for investments to improve the distribution network.