|
|
Press Release
AFAG, June 13, 2013
PROPOSED INCREASE IN TARRIFS IS RECKLESS:
PURC SHOULD REJECT THE PROPOSAL
The Alliance for Accountable Governance (AFAG) is alarmed at the
proposed increase in tariffs by the service providers. We are
appalled at the nearly 150% increase in electricity tariffs
tabled before the PURC. Did the providers consider the
implication of this absurd proposal on industry, SMEs and the
larger economy as a whole? The utility providers should bear in
mind that, Ghanaians do not have the capacity at this time to
absorb the shocks of this proposed increment. Neither is the
economy. It is wicked and insensitive against the background
that, Ghanaians are yet to recover from the shock of the recent
petroleum and LPG price hikes.
It would be recalled that, in 2010, AFAG embarked on a
demonstration in Kumasi against similar price hikes. At that,
time, if our arguments cutting waste and checking corruption was
heeded to, we would not be looking at the massive hikes proposed
by the utility services. As usual, they opted for the easy way
of increasing prices while the entrenched and endemic waste
remained.
AFAG stands by Ghanaians against this proposal.
This increment if accepted would force over three hundred (300)
medium and small scale businesses to fold. Along with this would
be the large number of people who would lose their jobs.
Considering the large unemployment rate in the country, no
institution should consider making a decision which would
exacerbate this precarious situation.
Furthermore, large increases would raise the cost of doing
business and would eventually, dampen investor confidence at a
time, the nation is working hard to get people to invest in the
economy. It is our analysis that, this proposed tariff increase
would affect productivity and consequently, slow down the
economy. Badly needed revenue for development would also be
affected.
The utility providers have become like ‘spoilt children’ who
always ask for more but consistently fails to deliver results.
This is not the first time such demands are being made on
consumers. In a situation where increase in tariffs does not
lead to improvement in service delivery, it is difficult to
justify this outrageous proposal from the utility providers.
The ECG and GRIDCO have constantly been wasting over 21% of
electricity through distribution negligence and gross
incompetence. What is being done to reduce this waste?
Additionally, the utility providers instead of picking the easy
way of tariff increases should be effective in collecting the
huge arrears owned to them by the government and the public.
They should also check illegal connections and meter tempering,
which we gather is being ‘supported’ by their own technicians.
OUR RESOULUTION
1. The proposed increment is not justified under any financial
model that AFAG has come across. If there is any, we challenge
the utility providers to publish such a model
2. The government with no intention of increasing salary to
cushion workers, it is difficult for AFAG to side with this
increment.
3. From history, we reckon that, the private sector is likely to
lay workers off to stay afloat. In such a situation, workers are
likely to suffer. This is more precarious when the government
has crippled the economy through waste and phantom expenditures.
4. Cutting waste in transmission and distribution should be the
first priority of the service providers
CONCLUSION
AFAG totally rejects the leaked proposal to the PURC. We also
call on the AGI, GEA, TUC and the entire private sector to
condemn this proposal. Furthermore, they should join forces and
go beyond condemnation and prepare to hit the streets or use any
other means within their reach to prevent this absurd proposal
from seeing the light of day. They owe their membership this
much.
Once again, we reiterate our opposition to the proposal and urge
the PURC to ‘throw away’ the proposal and should not make a
mistake of approving the proposed increases else they would meet
the wrath of Ghanaians and AFAG. Ghanaians deserve to know the
financial basis giving rise to the said percentage proposals.
God Bless Mother Ghana
SIGNED
HENRY ASANTE 0248274646
ABU RAMADAN 0244570006
HON. APIETU ANKRAH 0244375034
MUTALAH MOHAMED 0243807244
OPOKU DAVIS 0244861593
ARNOLD BOATENG 0244294754
|
