Increase in utility tariffs exacerbating economic hardships - Kansangbata

A former Deputy Minister of State, Abu Kansangbata, has raised concerns regarding the timing and rationale behind the recent utility tariff hikes.

According to him, these increments further burden the already struggling population.

The Ghana Water Limited (GWL) has repeatedly expressed concerns over the high cost of chemicals required for water production, citing these as a primary reason for advocating tariff increases.

Despite these explanations, Kansangbata is questioning the appropriateness of such increases at a time when the economic indicators in Ghana are not reflective of positive growth or stability.

He noted that while utility providers are facing their own challenges, the burden should not be shifted entirely onto citizens who are already grappling with the high cost of living.

According to the PURC, the recent increments in water and electricity tariffs, which stand at 1.86% for water and 3.02% for electricity, are largely due to inflationary pressures, fluctuations in the exchange rate, and the rising cost of production materials such as chemicals for water treatment

In recent months, there have been significant public concerns over the increasing tariffs on water and electricity in Ghana.

The Public Utilities Regulatory Commission (PURC) has justified these adjustments by pointing to factors such as inflation, exchange rates, and the weighted average cost of gas.

While these reasons may seem valid, they have sparked a heated debate, particularly given the economic hardships currently being experienced by the majority of Ghanaians.

Kansangbata argued that the current administration has lost focus and direction in managing the economy, and this has resulted in poorly timed and illogical policy decisions, such as the tariff hikes.

He further critiqued the reasoning behind the water tariff increase, questioning how the cost of water production can be so high while tariffs remain relatively low.

For him, "this is a failure of governance that reflects a lack of concern for the welfare of ordinary Ghanaians."

Abu Kansangbata’s concerns about the recent tariff hikes reflect a broader dissatisfaction with the government’s economic management and its impact on the daily lives of Ghanaians.

SSD/AE

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