The proposals by the major utility companies in the country for an increase in tariffs have not gone down well with the public in the Western and Central Regions.
They opposed the proposed increments of about 100 per cent for both electricity and water.
Making their contributions at a public hearing organised by the Public Utilities and Regulatory Commission (PURC) on Saturday, to get concerns from the public ahead of an upward adjustment of tariffs, participants called for a more transparent, accountable and prudent management of resources in the power and water sectors.
They also pointed out that the companies should be concerned with the welfare of the people, and also ensure the judicious use of resources.
A few, however, noted that due to the increase in cost of production, the tariffs should be adjusted realistically.
The public utilities, Volta River Authority (VRA), Ghana Grid Company (GRIDCo) and the Electricity Company of Ghana (ECG), have cited increase in cost of production, the expansion in demand for services and the depreciation of the cedi as key influences to their operations and want the public to agree on the proposed tariffs.
The proposal shows that VRA wants an increment of tariffs from14.6p to 30.3406p per kilowatt hour, GRIDCo from 4.00 p to 5.31p whilst the ECG requests an increase from 16 .46p to 35.00p per kilowatt per hour.
In his contributions, a Unit Committee member at Takoradi, Mr. Oduro Acheampong, said it was the expectation of the public to see and analyse a statement of accounts on how the utilities used the revenue for the period between 2013 to date, so that they could appreciate the challenges and also agree to the review of the tariffs.
“Next time, let’s have the statement of accounts. Anyway, ECG; are you increasing the tariffs because of ‘Dumsor’ or to sustain the system?” he asked.
The Assembly woman for Presby in Takoradi, Madam Mercy. M. Quarshie, also suggested that, the tariffs for electricity should be reduced to 24 pesewas as the proposal was too high.
The Principal Financial Analyst at VRA, Mr. Joseph Adokoh, said expected power generation totalled 1,884 mega Volts (MV), out of which 1,088MV was available, leaving a shortfall of 796MV, assuring that, the authority hoped to reduce the power outages soon.
He indicated that cost of production in power generation had gone up, saying, for example, that fuel cost for the plants as at 2013 was GH¢887,105 and GH¢942,933 in 2014.
“We have no money to lift oil as in the estimates of fuel for our plant, 82 percent of our revenue goes into oil and gas expenses;this is not enough and we have to go borrowing. Again, since 2012, the dollar rate had also gone up from GH¢2 to GH¢4. Indeed,we are suffering, dumsor yes, but let’s all agree to improve our systems and production levels.” Mr. Adokoh pleaded.
He mentioned that the depreciation of the cedi against the dollar, borrowing at high interest rates and load shedding of creditworthy customers, were some of the major challenges facing the country’s pioneer power generator, hoping that, with new tariffs, ‘dumsor’ would be solved and also augment the system.
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