The Minority in Parliament has described the governments relief package for low-income consumers of electricity as disappointing. President J. A. Kufuor announced the relief to mitigate the impact of the increase in electricity tariffs on the vulnerable in the society. Consumers of electricity in the urban and rural areas (lifeline) who consume between one to 50 units are to pay ?9,000 instead of the ?14,000 announced by the Public Utilities Regulatory Commission (PURC) last Monday. The Government will then pay the difference of ?5,000 as a subsidy directly to the Electricity Company of Ghana (ECG).
However, the Minority Spokesman on Mines and Energy, Abraham Kofi Asante, says consumers within the lifeline account for only two per cent of power supplied to residential consumers. Therefore he pointed out in a statement that the effect on the urban and rural poor and other vulnerable groups will be very minimal.
Mr. Asante also said the government did not handle the issue with "honesty," and that, there is a justified perception that it attempted to hoodwink the nation. An amount of 353.6 billion cedis was provided in this year(quote)s budget as transitional subsidies to cushion utility companies and it is misleading to present the current subsidy as a new initiative recently crafted to mitigate the impact of these new tariffs", he added.
Mr Asante also observed that the bulk of the country(quote)s poor live in compound houses serviced by a common meter and said their combined electricity use put them in a higher bracket and would bear the full brunt of the new tariffs increases.
It expressed dismay that President John Agyekum Kufuor did not announce any measures to mitigate the impact of higher water tariffs on the low-income group. "The President did not announce salary increment to ease the burden of the killer tariffs on workers in the formal sector."
The Minority expressed their support for the Trade Union Congress call for an urgent downward review of the tariffs. "Until such a review has been carried out, implementation of the new tariffs should be suspended." The group says it will soon come out with a more detailed analysis of the effects of the new tariffs on all categories of consumers.
