[ 2016-01-28 ]

Ekwow Spio-Garbrah

Spio-Garbrah criticises 'incredibly outrageous' utility tariff hikes
Trade and Industry Minister Ekwow Spio-Garbrah has
described utility tariff increases as
‘incredibly outrageous’, noting it is an
imprudent strategy in an election year.

“It is curious that many of these charges are
coming in the first month of an election
year….why have some of these institutions waited
for an election year and all of a sudden we hear
incredibly outrageous rates…”.

Speaking with JOY NEWS on a working visit to the
Volta Region, Dr. Spio-Garbrah indicated the
far-reaching economic implications of the tariff
increases cannot be over-emphasized.

He recommended that the tariff should have been
spread over the years instead of the sharp
increases especially when government has a tough
election to fight.

Since the beginning of the year, consumers have
been complaining about 59% increase in electricity
and 67% increase for water. A 10% charge on
electricity was added but left unannounced by
PURC, leaving consumers even more bitter about the
adjustments.

Dr. Ekwow Spio-Garbrah expressed displeasure about
the increases and warned the utility tariff
increases will kill local businesses.

“There is no point in killing the goose that is
laying the golden egg. You might think you are
doing a good job by just raising revenue but you
are killing the whole economy,” he pointed out.

He questioned the rationale behind the increases
and expressed disappointment that as a
stakeholder, his ministry was not consulted.

The Trade and Industry Minister Dr. Ekow
Spio-Garbrah also charged the Association of Ghana
Industries – AGI and its allied agencies to
“seek from these agencies more comprehensive
explanations”

This according to him is necessary to protect
businesses.

From the 1st of February, the price of a sachet of
water is to go up from 20 to 30 pesewas whilst a
bag of 30 sachets also moves from 3 to 5 cedis,
Sachet Water Producers have announced.

They say increases in electricity and water
tariffs plus the recent fuel price increases have
compelled them to increase the prices of their
products.

Listen to audio
Since 2013, electricity tariffs have gone up by
182.75%.

PURC in October 2013 announced a 78.9 per cent in
electricity tariff only to slash it by 25%
following government intervention. This meant
consumers were asked to pay 59.18%

In 2014, PURC reviewed utility tariff upwards
twice. First in July, electricity tariffs went up
by 6.1% while water tariffs were increased by 12
percent.

Later in September 2014, the cost of electricity
shot up by 6.54% while that of water has been
increased by 4.54 %.

In June 2015, the Public Utility and Regulatory
Commission again announced a 51.73% increase in
electricity and 15% increase for water.

But before the year would end, the PURC on Monday
December 7, 2015 announced a 59.2% and 67.2% hikes
in electricity and water respectively ahead of the
Christmas season.

Source - Myjoyonline

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