Skip to main content

Consumers kick against proposed utility tariff increments -ECG wants to cut loss

 


Utility consumers in the Northern Region have appealed to service providers to postpone their demand for the upward adjustment of water and electricity tariffs next month in view of the current economic hardship in the country.

Given the prevailing economic conditions, they said, an increment in utility tariffs would worsen the plight of the citizens.

Meanwhile, the Electricity Company of Ghana (ECG) has said it is targeting to cut losses by five per cent through a special exercise to rectify illegalities.

At different stakeholder engagements by the Public Utilities Regulatory Commission (PURC) in Tamale and Cape Coast, consumers said it was unfair for the ECG to increase its tariffs, given the current general economic hardship in the country.

Tamale

The Tamale forum was to elicit consumers’ views on the submitted utility tariff proposals for the 2022-2027 Multi Tariff Review Period.

The Northern Electricity Distribution Company (NEDCo) and the Ghana Water Company Limited have proposed 113.4 and 334 per cent hikes in tariffs, respectively.

They are demanding over a 100 per cent increment in tariffs to meet what they call operational costs.

In view of that, the PURC is currently engaging all stakeholders across the country to solicit their views before announcing new tariffs.

Concerns

Speaking at the Tamale forum, a participant, Adam Nuhu, said the current economic condition in the country was not favourable for tariff increments, as they would overburden consumers.

Kindly postpone the proposed tariff adjustment. Let us see how we can swim through the troubling waters at this time, so that we get to a comfort zone before you come back to talk about them. For now, talk about your losses and how you hope to recover them,” he said.

Another participant, Yakubu Grace, said: “I think the service providers are not proposing to us but putting it to us that they have come to a conclusion because they never consulted us before coming up with the proposed percentage increments.”

In her view, the best approach for the service providers was to solicit public view in order to build consensus on the percentage of increment, but not determine the rate of increment before engaging the public.

Overburden consumers

For his part, the Paramount Chief of the Sagnarigu Traditional Area, Naa Yakubu Abdulai, while acknowledging the high tariffs and the economic hardship, urged the service providers and the PURC to ensure that the new tariff increments did not overburden consumers.

The Executive Secretary of the PURC, Dr. Ishmael Ackah, gave an assurance that the commission would ensure a balanced interest for both consumers and the utility providers.

Most of the concerns have not been so much about the increment but the economic conditions and the kind of services the companies provide, so we will look into that to ensure the interest of all stakeholders,” he noted.

Cape Coast

At a media interaction in Cape Coast, the ECG said it was targeting reducing its current 28 per cent losses to at least 23 per cent at the end of the special auditing exercise.

The Director of Customer Services of the company, Abraham Anokye Abebrese, said the target was in line with the PURC’s acceptable losses level of 22.6 per cent.

He said the auditing would include resolving illegalities and anomalies in power distribution and theft through uncaptured meters, faulty meters, meter by-passing and meter tampering during its one-month moratorium given customers from June 7 to July 6, 2022, during which period the company would work with all to ensure that anomalies were corrected.

Abebrese advised persons who had illegally connected power to take advantage of the moratorium to rectify all illegalities and anomalies.

He indicated that power theft had been a significant contributor to power losses.

Prosecution

He warned that after the moratorium, all illegalities would be seen as theft and prosecuted.

Abebrese said the company would check every house and every meter to check for illegalities or anomalies and prosecute offenders.

Comments

Popular posts from this blog

Fitch Solutions retains 2025 growth rate projection at 4.2%

 Fitch Solutions has reaffirmed its projection that Ghana’s economy will expand by 4.2% in 2025. This estimate slightly exceeds the International Monetary Fund’s forecast of 4% and the World Bank’s projection of 3.9%. The UK-based research firm attributes its outlook to historically high gold prices, which are expected to cushion the Ghanaian economy against a global slowdown triggered by rising tariffs. Higher gold prices are anticipated to strengthen government revenue, enhance foreign exchange earnings, and help sustain currency stability. The report also highlights that Ghana is relatively less vulnerable to increasing trade restrictions from the United States, given that its primary exports—gold and crude oil—are not directly affected by the tariffs introduced by President Trump’s administration. Moreover, the US constitutes only about 4% to 5% of Ghana’s total exports. In contrast, Ghana’s trade relations are more heavily oriented toward China and European countries, particul...

BoG injects $20m into FX market to support 11 BDCs

  The Bank of Ghana (BoG) has injected $20 million into the foreign exchange market in the latest round of its forward FX auction targeted at Bulk Oil Distribution Companies (BDCs). The intervention, which benefited eleven BDCs, is part of the central bank’s broader strategy to stabilise the cedi and ensure price stability in the petroleum downstream sector. Held on Tuesday, April 29, the auction was priced at a locked exchange rate of GHS 14.28 to the US dollar, with bid offers ranging from GHS 13.85 to GHS 15.55. This move reflects the BoG’s continued effort to deepen forex liquidity and safeguard the domestic fuel supply chain against volatility in global energy markets. By directly supplying FX to BDCs, the central bank seeks to ease pressure on the interbank market, guarantee the uninterrupted flow of petroleum products, and mitigate the pass-through effects of exchange rate fluctuations on fuel prices. The $20 million disbursement forms part of a $120 million programme for th...

Kenpong Travel & Tours Champions Breast Cancer Awareness During Customer Week

  As part of activities to mark Customer Week, Kenpong Travel & Tours, a leading travel agency in Ghana, is joining the global fight against breast cancer. October is Breast Cancer Awareness Month, and the company is passionate about spreading hope and support to those affected. At Kenpong Travel & Tours, we believe that travel and exploration can be therapeutic and empowering. That's why we're committed to supporting our customers and the broader community in the fight against breast cancer. We're proud to stand in solidarity with breast cancer warriors and survivors. At Kenpong Travel & Tours, we believe that everyone deserves a chance to explore the world and create unforgettable memories. Let's prioritize health, support one another, and fight against breast cancer," said Kennedy Agyapong, CEO of Kenpong Travel & Tours. Our efforts are focused on raising awareness, promoting early detection, and supporting those affected by breast cancer. We urg...