Press Release

AFAG

March 28, 2015

SCRAP PURC: NEW TARIFFS: BASELESS AND INSENSITIVE

The Alliance For Accountable Government (AFAG) considers the new tariffs as announced by the PURC as insensitive, needless and baseless. There is neither a commonsensical nor economic basis for this increment. Clearly it seems the PURC has become a tool for the oppression of business and domestic consumers.

At a time when “dumsor” has become “dum dum”, and businesses are laying workers off, it is amazing the PURC would allow this increment to go ahead. As of today, coca cola has laid off 500 workers. So have many others businesses as a result of erratic power supply in order to stay afloat.

Consumers are already paying market price for utilities with no commensurate services from operators. For the past six years the excuse for price hikes has always been “to improve services“ but shockingly, all increases have resulted in poor service.

The PURC should put its thinking cap on and reckon that, any such increases without fixing “dumsor” is going to raise operating cost of businesses and would lead to further lay offs and consequently affects the larger economy.

AFAG is worried that, with an economy in coma, flat manufacturing and stagnant salaries, the PURC would baselessly agree to increase tariffs. For the PURC to effect increases in utility prices in the hope of expected improvement in the energy crisis is like putting the cart before the horse. It is insensitive and AFAG can only surmise that, this insensitive decision was arrived without much though and broader consultations.

AFAG calls on the PURC to rescind this reckless decision. We further calls on Civil Society, Political Parties, Trade Unions, Association of Ghana Industries, among others, to show teeth and kick against this decision.

AFAG Leadership