ON UTILITY TARIFF INCREASES ANNOUNCED BY THE PURC

Government is disappointed that the PURC took the decision to announce increases in utility prices without exhausting the consultation process with the Ministries of Energy, Finance and Works and Housing.

Government concedes that the PURC has the legal authority under ACT 538 of 1997 to determine and set the tariffs and is not subject to the direction or control of any person or authority in the performance of this task.

However, as a major stakeholder, and the ultimate owner on behalf of the people of Ghana of the utilities, Government has a right to expect that there would be full consultations and regrets that an agreed meeting between the PURC and the Ministers of Finance, Energy and Works and Housing was not honoured by the PURC.

The increases having been announced, Government is finalizing work on its policy interventions designed to mitigate the impact of the increases especially on the poorest and most vulnerable consumer, the “Lifeline Consumer”.

Government intends to announce its policy on mitigation when H.E. the President commissions the Second Electricity Bulk Supply Point at Mallam on Thursday, 25th July 2002.