November 21, 2024

Government should at least pay 50% of the tariffs for Ghanaians – Minority in Parliament

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John Jinapor

The Minority in Parliament has said it expects the government to cushion Ghanaians from tariff increment owing to the struggles most of the citizens are going through daily as a result of the harsh economic conditions.

Public Utility Regulatory Commission on Monday, August 1 announced tariffs adjustment after earlier receiving demand from two utility services providers; the Ghana Water Company Limited and the Electricity Company of Ghana for tariffs increase.

The increment which is expected to take effect from September 1, 2022 with consumers needing to pay 27.15% more for electricity instead of the 148% requested by the company and 21.55% more for water instead of the 334% requested by GWCL.

 According to a statement endorsed by Ranking Member on the Mines and Energy committee, John Abdulai Jinapor, per the Caucus’ calculations even the announced 27.15% for the Electricity Company of Ghana is far below the actual rate.

“A critical look at the tariff structure as announced reveals that all residential consumers who fall between 0-300 kWh bracket have witnessed a price increase from GHp/kWh 65.4161 to GHp/kWh89.0422, representing an increment of almost 34%.

“It should be noted that the bulk of residential consumers fall within the 0-300 kWh bracket and will therefore be adversely affected by the 34% adjustment.”

The Minority insisted that the current economic situation that has saddled the country requires the government to at least bear half of the cost, referencing what the National Democratic Congress did in 2016 

“We are of the strongest conviction that Government can and must do something to cushion Ghanaians who are going through unimaginable hardships with ever-worsening poverty levels under the Akufo-Addo/Bawumia-led government.

“It will be recalled that following the major tariff review in 2016, the NDC Government intervened, resulting in a reduction of the rate of increment by close to 50%.”

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