Listen to organised labour

Certain basic ingredients should be in place at the right cost to facilitate the growth of the economy. This is because investors always look for a conducive environment to do business, so that they can get the right returns on their investment.

Business people look for the bottom line, no matter the consideration for their actions, but residents of investment destinations must also be concerned about the policy interventions by the government, so that they can also be handsomely rewarded for their hard work.

Thus it is important for the government to get the right mix of economic policies that can motivate people to work hard to benefit from the tax regime and other costs of doing business, such as utility tariffs.

Admittedly, it costs a lot to provide power and water over a big jurisdiction like the whole of the country.

For a few years now, the utility providers, in our case the Electricity Company of Ghana (ECG), the Ghana Grid Company Limited (GRIDco), the Volta River Authority (VRA) and the Ghana Water Company Limited (GWCL), have been knocking at the doors of the authorities to adjust upwards their rates.

The Public Utilities Regulatory Commission (PURC) had a hectic time convincing all stakeholders of the need for an upward adjustment in the tariffs.

The last time tariffs were adjusted was in 2010.

In the face of the challenges in producing the utilities, the government is heavily indebted to the companies, thereby threatening their viability.

The cry from the utility companies that they risk collapse if the PURC fails to adjust the tariffs immediately might have stampeded the regulator to raise the tariffs beyond the expectations of consumers.

The PURC raised tariff for power by 78.9 per cent and that of water by 52 per cent.

And since the announcement, consumers have raised their voices for an immediate review of the tariffs downwards, otherwise every economic and domestic activity will grind to a halt because consumers cannot pay.

The Association of Ghana Industries (AGI), the Ghana National Chamber of Commerce and Industry and some political parties have called on the PURC to do something about the levels of adjustment.

The latest to join the call for review is organised labour, which has given the PURC and the government 10 working days to slash the recent tariff increases.

The utility companies have always argued that tariff adjustments will facilitate the efficient delivery of their services to consumers.

But consumers, including domestic and industrial ones, do not have testimonies to support such claims from the utility companies.

The PURC has always charged the utility companies to deliver efficient services, but the situation where taps are always running dry and the frequent “dum sor, dum sor” indicate that the PURC only barks but cannot bite.

Times are tough already and we do not want the situation aggravated by industrial unrest that will bring economic activities to a standstill.

The Daily Graphic calls on the government and the PURC to engage consumers in a dialogue, with the view to finding solutions to the looming shutdown of economic activities.

While we are at it, we think the utilities can look within and reduce the waste in the system as a move to reduce the cost of producing the utilities.

The Daily Graphic thinks that we have reached the stage where something must give, so that the growth of the economy is not disrupted by the high tariffs and subsequently industrial action by organised labour.

We urge the decision-makers to listen to the plea of consumers and adjust the tariffs to levels that will be affordable by all.

Daily Graphic/Ghana