Kofi Capito
Consumer rights advocate, Kofi Capito has called on government not to scrap subsidies on utility tariffs and other services, but rather direct such interventions to the needy.
Mr. Capito said government should fashion out a system to identify individuals who are disadvantaged and target subsidies at such people, rather than rolling out general subventions which may be enjoyed by people who can do without such social interventions.
“The way subsidies are applied [in advanced countries] is not the way we apply subsidies in Ghana. We should be able to identify people who need subsidies.
“If someone is a vulnerable person, whether unable to work, whether his or her income is not enough…. we should be able to identify them. Then government can top up for such people to pay full cost,” Mr Capito said on Wednesday.
Speaking to Accra-based Maharba FM, Mr Capito said a critical look at the situation can help government to utilise subsidies judiciously to the benefit of Ghanaians.
Mr Capito’s suggestion comes on the heels of protests from the Ghana Trades Union Congress (TUC) and the Association of Ghana Industries (AGI) against proposals by the utility companies to increase tariffs.
The two bodies, according to the Daily Graphic, are rather asking the Public Utilities Regulatory Commission (PURC) to compel the utility providers to reduce their technical and operational inefficiencies as a pre-condition for tariff review.
While the TUC said consumers were paying heavily for the poor macro-economic performance and operational inefficiencies of the utility companies, the AGI said there had been no improvement in the efficiency of electricity and water supply to warrant the proposed upward review.
A statement addressed to the Chief Executive Officer of the PURC signed by the acting Secretary-General of the TUC, Dr Yaw Baah, Tuesday said, “Given the circumstances in which we find ourselves today, economically, socially and politically, we do not think that this is the time for a major tariff review”.
The PURC is currently collating views across the country about a possible tariff review.
