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01.09.2011 Editorial

Buck Up, Utility Companies

By Daily Graphic
Buck Up, Utility Companies
01.09.2011 LISTEN

Utility tariffs have been adjusted upwards marginally by the Public Utilities Regulatory Commission (PURC) effective September 1 to November 30, 2011. With this adjustment electricity and water tariffs have seen a seven per cent and 6.72 per cent increases respectively.

The Electricity Company of Ghana (ECG) and the Ghana Water Company (GWCL) have been reminded that electricity and water consumed in August, 2011 but which fell within the September, 2011 billing cycle should not be charged based on the new rates.

The increases, according to the Commission, exclude consumers who fall within the life line of 0-50 units a month.

At a news conference in Accra on Tuesday to announce the new tariffs, the Chairman of the PURC, Dr E.K. Annan, said the new tariffs did not include Value Added Tax (VAT) and National Health Insurance Levy (NHIL) as those taxes lay outside the Commission’s mandate.

Among the factors which informed the decision, according to the Chairman of the PURC, were increasing trend in the world market price of crude oil and the inadequate level of natural gas for generating electricity through thermal sources.

Dr Annan said there had also been some improvement in quality of service which was, in some areas, quite significant based on a monitoring done by a combination of on-site inspection of the output at utility installations, analysis of generation, transmission and distribution data, as well as consumer feedback.

The Daily Graphic acknowledges that the utility providers need to raise money in order to render quality service to Ghanaians. But the fact is, this must be complemented with improved service delivery.

However, we appreciate the challenges which sometimes face the service providers as enunciated by the PURC Chairman. And as far as the energy needs are concerned, there is the need to speed up gas infrastructure at the Jubilee Oil field to get gas to fuel the operations of the ECG and by extension the GWCL.

This clearly answers the escalating utility charges, since the cost of crude oil keeps rising all the time and we cannot deceive ourselves that the production of oil on commercial basis will abate this trend.

Although customers continue to pay for the provision of utility services, constantly they continue to experience persistent power fluctuations as far as electricity is concerned. Regarding water supply, the flow of water has been erratic and woefully production cannot meet the demand.

Some of the problems are as a result of burst pipes which gush out treated water for days unend. We hope that the GWCL will be up to the task.

The Daily Graphic wishes to indicate to the PURC to play the role of a mediator and also try to address the concerns of customers, who are always right in whatever action they take.

The PURC, we think, must ensure that there is value for money by impressing on the service providers to deliver efficient service to consumers, respond to complaints of wrongful billing, among other concerns.

The Daily Graphic will take the words of the chairman that the PURC was committed to the provision of quality utility services to consumers and would continue to put in place measures aimed at ensuring that consumers of water and electricity got fair value for money.

But the PURC can do this more effectively if it does not only bark but bite as well.

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