Tariff adjustment

Ghanaians have for the past few months anxiously waited for the Public Utilities Regulatory Commission (PURC) to announce increases in tariffs for utility providers after a series of engagements with the public and other stakeholders.

But yesterday's announcement might have come as a surprise to them because the level of increment of 78.9 per cent for electricity and 52 per cent for water appears far too high above their expectations. No wonder the criticisms have been swift and intense.

The Daily Graphic acknowledges that the cost of doing business has gone up with inflation and the exchange rates have worsened the already bad situation. The prices of petroleum products and transport fares have also gone up in recent times.

In all these, workers have not seen any appreciable levels of increase in their incomes. Certainly, their reaction to the increases can be appreciated.

We acknowledge that the “dumso dumso” problem is under control as supply has stabilised for industry and in our homes. But can we say that of water supply? Big water bodies abound in our country yet the people continually lack potable water in the midst of plenty.

That is why we believe the utility providers need the adjustments to improve upon their services to the population. These agencies made the same claim in the past for tariff adjustment but the increases did not witness improvements in services.

But we think part of the problem in the utility business is the PURC, the regulator that does not walk its talk.

What happened to its own agenda of periodic price adjustments to avoid such one-off hikes which end up creating disaffection in the society?  The National Petroleum Authority has shown the way with its two-week periodic review of petroleum prices and no matter the increases, they are better appreciated by the public.

The Daily Graphic believes that public institutions need to really sit up in the discharge of their duties.

For now, we think the tariff adjustments are just too high and would overburden workers and industries.

However, we expect the utility providers to justify the increases in tariffs by providing quality and consistent services to the public. The Ghana Water Company Limited has a lot to do in providing water to the numerous homes and institutions without water.

In any case, the government had earlier this year also come out to say it had settled its indebtedness to the ECG. What has the ECG used the money for to stabilise and improve power supply?

We can no longer take the usual excuses of no money for the poor services.

The Daily Graphic pledges to monitor these agencies and will take them on appropriately if they fail to deliver.

In the meantime, we call on the government to put safety nets in place to reduce the pain from these astronomical increases on the people and business.

Daily Graphic/Ghana