Reduce tariffs now – Organized Labour demands of PURC

December 9, 2015

Organized Labour is demanding that the Public Utility Regulatory Commission (PURC) immediately reduces the utility tariffs recently increased.

The group is further calling for the suspension of the implementation of any new tariff until there is some stability in the supply of power.

In a press statement released Wednesday evening to register its displeasure, the group further insists that the utility companies must be compelled by the PURC to reduce their technical and operational inefficiencies as the condition for tariff review.

On Monday the PURC approved new rates of utility tariffs. A 59.2 percent increase in electricity tariff across the board and between 69and 89.8 percent increase in water tariff.

The hike has been met with public anger as the increment is deemed by a huge section of the citizenry as astronomical, especially as the utilities have not been efficient in their performance.

Below is the full statement

PRESS STATEMENT ON UTILITY TARIFF INCREASES

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The PURC has approved new rates of utility tariffs. In a statement issued on Monday, 7th December, 2015, the PURC announced a 59.2 percent increase in electricity tariff across the board and between 69and 89.8 percent increase in water tariff.

Our position is that PURC should have first considered the availability and reliability of power before a review of tariffs. We maintain that it is only when the people of Ghana, including workers in both formal and informal sectors of the economy, are sure of a reliable supply of power and water that they can be convinced to pay higher tariffs. Ghanaian consumers are already paying heavily for the depreciation of the Ghana Cedi and the high inflation. Real wages have fallen drastically especially since 2012.

We have been following the debate and discussions in the media since PURC announced the newly approved tariffs. The people of Ghana are still doubting whether these tariff increases are going to solve the “dumsor”, as the utility providers would like us to believe.

Following our consultations with the PURC, we did not expect any increase in tariffsbeyond 50 percent as against the 129 to 400 percent proposed by the utility companies, on condition that the power supply would have stabilised. We also expected the implementation of any new tariffs to start next year.

As workers we are worried about the ever increasing utility tariffs which do not match the rate of increase in incomes. We are also concerned about the poor macro-economic performance and the technical and operational inefficiencies of the utility companies which have contributed greatly to the frequent hikes in tariffs.

We demand, as a matter of urgency, that:

(1) PURC should reduce the tariffs further;

(2) PURC should suspend the implementation of any new tariff until there is some stability in the supply of power;

(3) The utility companies must be compelled by the PURC to reduce their technical and operational inefficiencies as the condition for tariff review.

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KOFI ASAMOAH

SECRETARY GENERAL OF TUC

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ALBERT YAMOAH

GHANA FEDERATION OF LABOUR (GFL)

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AHENAKWA-QUARSHIE