North Divided Over Tariffs Increment

Utility consumers in the Northern and Upper East Regions are divided over proposed tariffs increment by the utility service providers. Some of the about 500 consumers from the two regions, who attended a public forum on the proposed tariffs adjustment organized by the Public Utilities Regulatory Commission (PURC) in Tamale over the weekend argued for marginal increment whiles others said the current status-quo should be maintained. Mr Mohammed Adam Nashiru, former President of Peasant Farmers Association, speaking at the forum, agreed that utility tariffs be increased but cautioned that the increment should be matched with quality service delivery. Mr Nashiru said based on the presentations of the utility companies, there was need to increase tariffs but it should be done such that consumers would be able to pay and utility service providers would also have the needed resources to continue to produce the service. The utility service providers including Volta River Authority (VRA), Northern Electricity Distribution Company (NEDCo), Ghana Grid Company Limited (GRIDCo) and Ghana Water Company Limited (GWCL) made separate presentations demanding 100 per cent increase in rates (VRA and NEDCo), 25 per cent (GRIDCo) and GWCL demanding an increase on its base rate from GHc1.70 per unit of water to GHc4. Mr Imoro Abdul-Wahab, a resident at South Kpalsi, Sagnarigu near Tamale supported the proposal to increase tariffs, arguing that it was expensive to use crude oil to produce electricity and therefore, consumers needed to pay more to cover the cost of production. Mr Abdul-Wahab, however disagreed with the level of increment being sought by the service providers. Madam Awariya Theresa, a member of Hand Weavers Association from Bolgatanga, rejected the proposal to increase tariffs saying the current tariffs should be maintained. Mrs Sophia Stanitezk, Chief Executive of Innovative Creative Foundation, a recycling organization based in Bolgatanga, also rejected the proposal to increase tariffs saying there was no guarantee that increase in tariffs would result in improved service delivery. Others urged the utility service providers to rather seal the leakages in the system that caused loss of revenue to generate more resources to support their operations. Mr Samuel Kwadwo Sarpong, Executive Secretary of PURC, said the proposal to increase tariffs was to ensure financial viability for the utility service providers.