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Review tariff increases - TUC

Fri, 4 Jun 2010 Source: GNA

Accra, June 4, GNA - The Leadership of the Ghana Trades Union Congress (TUC) has given the Public Utilities Regulatory Commission (PURC) a one-week ultimatum to review the recently increased electricity and water tariffs downwards to make them realistic.

The Leadership is also calling on the Commission to conduct a comprehensive social impact analysis of the price hike in tariffs to mitigate the negative effects of the tariffs on the citizenry. Dr Anthony Yaw Baah, Acting Secretary-General of the TUC, made the call on Friday at a press conference in Accra.

"The people of Ghana are saying that the tariff increases are unrealistic and unacceptable. We expect PURC to review those tariffs in consultation with the various stakeholders including the government of Ghana, and to announce the new price within one week." Dr Baah said after nearly three hours of a meeting TUC held with officials of PURC on Thursday, leadership was not convinced of the justification for the 'astronomical tariff increases.'

"The PURC officials explained that there is no increase in tariffs for lifeline residential users who consume between 0 and 50 units of electricity. For those who consume between 51 and 300 units the tariff increase is 42 per cent. The tariff for those who consume between 301 and 600 units was increased by 31 per cent, while those consuming above 600 units pay 21 per cent more," he said.

Dr Baah contended that a closer look at the figures showed much higher tariff increases for non-residential users.

"For example, for the non-residential consumers, the tariff increased from 14 GH pesewas to 26 GH pesewas per kilowatt hour for those consuming between zero and 300 units, representing approximately 86 per cent increase," he said.

"The increase was approximately 71 per cent for those who consume between 301 and 600 units. For those non-residential users who consume 601 units and above, the tariff increased from 19.5 GH pesewas per kilowatt per hour to 45GH pesewas per kilowatt per hour, representing an increase of 130 per cent."

Responding to questions concerning President John Atta Mills' endorsement of the increase in tariffs, Dr Baah said "what the President says is not as important as what he does. We want him to show to Ghanaians that he cares for us."

"We want to emphasize that we Ghanaians cannot afford the new price hike in water and electricity tariffs." When asked what the TUC would do if the PURC failed to respond to the request after the ultimatum expired, Dr Baah said "next line of action would be based on the outcome of event."

Source: GNA