The Trade Union Congress (TUC) has agreed to a request for an increase in utility tariff but bemoaned the over 200% proposal being demanded by the service providers.
“We agree that the utility service providers need tariff adjustment but the margins are what we are against. We can’t afford what they are demanding,” Kofi Asamoah, General Secretary of the TUC told Serwaa Akoto in an interview on Anopa Kasapa on Kasapa 102.3 FM Monday.
The utility services providers comprising the Electricity Company of Ghana (ECG), GRIDCO, Ghana Water Company Limited (GWCL), and the Volta River Authority (VRA) have sent a proposal to the Public Utility Regulatory Commission (PURC), demanding for over 200% tarrif adjustment to enable them improve on service delivery.
They referred to the depreciation of the cedi against major trading currencies on the world market, especially, the US Dollar, infrastructure deficit, as well as sytem loses to buttress their demand.
Following the demand, the PURC has in a stakeholder meetings been soliciting the views of Ghanaians to enable them arrive at a position that will not be detrimental to consumers.
But before that could happen, a cross section of Ghanaians as well as some institutions has kicked against any tariff increment.
They instead, prefer the utility service providers to improve on efficiency and enhancement of service delivery before they would agree for any tariff increment.
The TUC which had an engagement with the PURC over the demands of the utility service providers over the weekend said the public outcry for the need for service improvement is justifiable.
In the view of Mr. Kofi Asamoah, ever since the PURC introduced the automatic tariff adjustment formula in 2013, there hasn’t been any improvement in service delivery.
He also believes that when the utility service providers are able to reduce their system loses to the bearrest minimum the demand for tariff adjustment wouldn’t be outrageous.
“The service they are providing should correspond with the tariff adjustment they are proposing but when you look at the providers, they also have their own internal system loses which we believe should be reduced to the bearrest minimum.”
“For example, there are so many people tapping into the national grid for illegal power and they are not paying, so many schools and government agencies are still indebted to the ECG. So our advice to them is to try and collect their money before making demands for tariff adjustment.”
“There should be improvement in efficiency and services. If we will pay, it wouldn’t be the over 200% tariff adjustment they are requesting. They have to do that before they come to us to make demands for tariff adjustment.”
Mr. Asamoah told Serwaa Akoto that the Union would in the next seven days write to the PURC to state the percentage of tariff increment they believe would be appropriate for Ghanaians to pay.
By: Kasapafmonline.com/Ghana
