Private University Students Kick Against Utility Tariffs Hikes

Students of Private Universities in the country have fiercely rejected proposals by the utilities' service providers to hike tariffs by a whopping 166 per cent.

The Public Utilities'' Regulatory Commission (PURC) is currently wrapping up a nationwide consultation to gauge public reaction. However, the Private Universities' Students Association (PUSAG) has expressed outrage at the proposal.

Mr. Elias Zigah, President and Michael Sumaila Media Relations Officer of the association in a statement issued to the Daily Express said this astronomical increment is going to impact on the hike on their tuition fees.

The group said government does not subsidize their fees as compared to their compatriot's students from public universities.

'On our part as students from the private universities, this astronomical increment is going to impact on the hike on our tuition fees. Already, government does not subsidize our fees as compared to our compatriot's students from public universities'

The statement called on stakeholders and the general public to reject their proposal for providing poor services to Ghanaians which it describes not worthwhile.

The student body also advised the PURC to address it financial constraint to government that administer the finances for solution.

'Moreover if the Public Utility Regulatory Commission is under any financial constraint, they should address it to government that administer our finances for solution, not the general public' it conclude.

Meanwhile the PURC has extended the review of utility tariffs as it sets a new date for completion of preliminary stakeholder consultations.

The Commission will only begin the review process after consultations with key stakeholder groups.

There were initial reports that the tariffs would be reviewed as soon as the Commission completes stakeholder consultation by June ending.

But the Commission has indicated it will complete the consultations by second week in July. According to Nana Yaa Jantuah, Director of Public Relations and External Affairs at the Commission told Joy news they can only make a proper review after stakeholder consultations and media monitoring.

She explained that the issues identified after the consultations and media monitoring would be factored into the review process.

But she was optimistic that the PURC would come out with a report that will satisfy both power producers and consumers.

'The law enjoins us to look at the financials, ability and integrity of the utility provider, while at the same time ensuring that the consumer...is treated equitably and fairly', she said.

The country's utility companies including the Electricity Company of Ghana (ECG),the Volta River Authority ,the Ghana Grid Company (GRIDco),and the Ghana Water Company Limited (GWCL) have argued about the urgent need for tariffs increment to help guarantee investment that will result in availability of the utilities to the consumer.

The VRA for example, has indicated that is spending about $3million a day on the purchase of crude oil to fuel thermal power plants, whilst the Energy Ministry also believes the $50 million expenditure on crude oil every 20 days for power generation is unsustainable and a drain on limited resources.

Some analysts including the World Bank believe the tariffs hike is a necessity for the partial resolution of the ongoing power crises. However, political pressure groups, and all political parties including the governing National Democratic Congress have rejected the proposal, calling it a recipe for chaos.