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It is absurd, ridiculous to increase tariffs by 148%, 334% - Kofi Kapito

Chief Executive Officer of the Consumer Protection Agency, Kofi Kapito

Sun, 15 May 2022 Source: www.ghanaweb.com

I don’t know of any business in the world that will ask for a 148% increment – Kapito

Proposed tariff increment by ECG and GWCL unrealistic – Kapito

ECG, GWCL wants tariffs to increase by 148%, 334%


The chief executive officer of the Consumer Protection Agency (CPA), Kofi Kapito, has bemoaned the proposal of the ECG and the GWCL to increase tariffs by 148 percent and 334 percent respectively.

According to him, the proposals by the Electricity Company of Ghana (ECG) and the Ghana Water Company (GWCL) are unrealistic, while questioning where in the world utility bills are increased by over 100 percent.

Kapito suggested that the two utility providers should consider amending their proposal because no stakeholder in the industry agrees with them, asaaseradio.com reports.

“I don’t know of any business in the world that will ask for a 148% and the other company will ask for a 334% [increment]. It is absurd, ridiculous. Yes, you need an increase, just come up with some realistic percentage that can be supported by all stakeholders including the good people of Ghana."

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“I am old enough and I understand the economics that a single or double-digit number will be the best thing, but for you to add more than that, is a little bit on the higher side. We (CPA) were part of the stakeholders meeting at Alisa [hotel], ACEP and all kinds of agencies were there and believe me, I think apart from the utility companies, nobody who was there agreed with the increase or percentage that they were asking for,” he said.

The ECG has explained that the proposed 148 percent tariff increment covers the increment that has not been done between 2019 and 2022, adding that the proposal also includes a 7.6 percent increment over the next four years to cover Distribution Service Charges (DSC).

The GWCL has also explained their proposed increment is needed to help the company get out of its debts.

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Source: www.ghanaweb.com
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