J. H. Mensah endorses increase in utility rates

Chairman of the National Development Planning Commission J. H. Mensah has endorsed the decision of the Public Utility Regulatory Commission (PURC) to increase utility tariffs, despite concerns expressed by consumers that the efficiency of the services provided does not deserve an increase.

Speaking at this year’s Ghana Speaks Lecture series organised by the Institute of Democratic Governance (IDEG) Mr. Mensah said it is important that a as nation we brace ourselves for the changes that occur in the provision of utility services.

“We should be able to pay the requisite tariffs in order to make them sustainable for our own benefit,” the energetic old capo said.

Almost two months ago two, the Electricity Company of Ghana and the Ghana Water Company persuaded the sector regulator to allow them to increase the tariffs consumers are enjoying.

The two bodies are of the opinion that an upward adjustment in tariffs will help them improve efficiency and deliver to the maximum satisfaction of the Ghanaian public.

The public is however not in support of this move especially considering the reported levels of inefficiencies recorded at the two companies.

Economist Nii Moi Thompson for example has argued strongly against an additional increase in tariffs saying the two companies would do more than enough to the public by improving on their own inefficiencies.

His argument is that they pass on their shortfalls to a consuming public that is already overburdened with huge tariffs in the face of rising cost of living in the country.

It is even estimated that the Ghana Water Company alone loses about 40% of the water produced and this is recorded through burst pipes and inefficient managerial competence.

But Mr. Mensah, who spoke on the theme “Ghana@50:Observing African Excellence as Prelude to African Renaissance,” said the arguments put forward by the public is not appropriate considering the constraints the two bodies face.

“…we then continue to see a situation where we return to the period of electricity cuts, dry water pumps and many accumulated problems that engulfed us just recently”, he said.

Mr. Mensah also observed that there is a high level of low self esteem among the general Ghanaian populace and this ought to change. He said leaders who are put in positions of honour are content with the maintenance of past and present levels of performance.

“They do not sufficiently recognize it as part of their duty to continuously plan for change and improvement,” he articulated. “They do not motivate themselves or their subordinates to strive for higher standards.”

Mr. Mensah therefore called for a drastic change in the mental attitude of the Ghanaian from that of the present Third-World, low-performing, low-income Black African, “and replace it with a new image of higher standards of performance, news ways of doing thing.”

He added that “only then shall we be able to provide out of the arising average productivity of Ghanaians, the steadily improving standards of living that the nation is aiming for.”

He was unhappy with the laid back attitude of most Ghanaians when it comes to protecting state assets and ensuring that people are able to stand out and raise the ills in the society before their fellows.

Mr. Mensah believes Ghana will only be capable of moving itself from the economic doldrums if serious and pragmatic steps are taken by those in charge of policy formulation to ensure that the right economic policies are put in place, and felt by the ordinary person on the streets.

He also maintained his already stated position that Government should do away with its share in the Agricultural Development Bank. According to him the position of the TUC is purely founded on populist arguments without the needed expertise backing it.