The Minority spokesperson on Finance, Dr Cassiel Ato Forson has urged Ghanaians to brace themselves for water and electricity tariffs adjustment in the coming days.
As inflation shoots up and fuelling increment of prices of goods and commodities, the MP for Ejumako-Enyan-Essiam in the Central Region suggested that the government should have found a way to cushion the citizenry instead of accepting the tariffs being pushed by the Public Utilities Regulatory Commission (PURC).
In an interview on Gumbe Show on TV XYZ, Dr Ato Forson told host Mugabe Maase that the government is almost done accepting the proposals from the PURC.
“Where the country is heading to is saddening. The government is about increasing water and electricity tariffs. The increment will be by 20 to 30 per cent. It won’t come to Parliament for approval; it is the President that will approve it,” he alleged.
The PURC had set July 15, 2022 for the announcement of the new utility tariffs.
The PURC said the decision to move the announcement date from July 1 was necessitated “as a result of the broadening of the tariff consultation process to solicit for more independent views; ensure independent verification of submitted projects and have deeper consultations with the key stakeholders.”
When unveiled, the new tariffs will be for the 2022-2027 multi-year major tariff announcement.
Aside from the entities, there have been public hearings where members of the general public voiced their concerns over the demand for utility increment by the Electricity Company of Ghana (ECG) and the Ghana Water Company Limited (GWCL), among others
Proposals from ECG and GWCL
The Electricity Company of Ghana is demanding a 148% increase in tariff.
A proposal from the power distributor, submitted to the Public Utilities Regulatory Commission (PURC), wants the adjustment to cover the period 2019 and 2022.
It also proposed an average increase of 7.6% in tariff over the next four years to cover Distribution Service Charges (DSC).
On its part, the Ghana Water Company Limited is demanding a 334% increase in tariff.
The GWCL in its proposal said over the years, the approved tariffs have not been fully cost-reflective.