Review new utility tariffs - TUC

THE Trades Union Congress (TUC) has called on the Public Utilities Regulatory Commission (PURC) to review the new utility tariffs downwards, as a matter of urgency.

It said given the low level of incomes of the majority of workers in the country, the new tariffs are unfair.

In a statement issued in Accra on Wednesday and signed by the Secretary General, Mr Kwasi Adu-Amankwa, the TUC further called for a special provision for those who live in compound houses.

It said that this is necessary, because the tariff structure provided by the PURC ensures that those who consume more electricity pay a higher unit cost for it.

“Thus, for those who live in compound houses, although they may not individually consume much electricity, the fact that they have no separate meters and that the electricity consumption of a number of them is recorded in one meter, they would automatically be in a higher consumption bracket for which they will pay more per unit, contrary to what their real consumption is”, the statement said.

It said that although the TUC acknowledges the necessity for some tariff increases, it is of the view that such increases should be such that they can be borne by consumers.

“Already, many consumers are in arrears with payment of utility bills because they find them too high”, it added. It said that the TUC has taken note, from the announcement made by the PURC, that the increase of the life line charge for electricity from ?7, 800 to ?14, 000 for 50 units is too high.

“The TUC also notes that those who consume more than 50 units are not expected to enjoy the benefits of the life line charge. For instance, those who consume up to 300 units are to pay ?400 per each unit. Again this is too high”, the statement added.

It said that the TUC believes that those who use up to 300 units, many of who fall into the lower income group, should also enjoy the benefit of the life-line charge to make their electricity charges affordable.

Furthermore, the statement also referred to the 60 per cent increase from August 2002, which is to be followed by a 12 per cent increase in March 2003, and said that, “granting any necessity for a two-phase increase, we think the 60 per cent increase for now is too high”.

On water tariffs, the statement said the 40 per cent increase announced is also too high.