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General News of Sunday, 6 October 2013

Source: joyonline

Groups opposed to tariff increment must use proper means - Gov't

Government has said any group opposed to the recent increases in utility tariffs must resort to “the proper processes” to seek a review.

Electricity tariff has been increased by 79 percent while water went up by 52 percent. Some groups have vowed to demonstrate against the increases.

The Trades Union Congress (TUC) has served notice that its members cannot pay the new increases and has demanded an immediate suspension of the tariffs.

But Information Minister, Mahama Ayariga, says there is a laid down procedure for challenging tariff increases which must be exhausted by all groups opposed to the increases.

According to him, "In the PURC Act, there is actually a procedure, if PURC comes to some conclusion regarding tariff levels, interest groups can intervene and really try to seek an explanation; and if they are unable to explain how they arrived at those tariffs to seek a review and to challenge the existing tariff levels."

He warned that, "if we don't go through these processes and we resort to making political statements, I think that we end up really causing a lot of damage to our institutions and why we set them up".

"There is a case for rethinking the existing tariff regimes, but I think that the interest groups that are making complaints should go through the proper processes for seeking a review if PURC is unable to convince them that the existing levels are reasonable and they constitute a proper balance of the concerns and challenges of utility providers, and the challenge that consumers are also challenged with," Mahama Ayariga noted.

Meanwhile, the TUC says it has no faith in a technical committee set up to review the recently announced increases in utility tariffs.

Following a meeting with the Vice President Kwesi Amissah Arthur on Friday, the PURC and the association of Ghanaian industries agreed to set up a technical committee to review the tariffs.

Although the TUC participated in the meeting, its Secretary General, Kofi Asamoah said he does not expect the committee to make any difference in addressing the union’s concerns.