Killer Utility Tariffs In Offing

Water and Electricity tariffs may go up by over 100 percent, should the Public Utility Regulatory Commission (PURC) support the demand by service providers for upward adjustments.

Four utility providers – VRA, GRIDCo, ECG and Ghana Water Company – are requesting for an upward tariff adjustment between 25 and over 100 percent to enable them cover cost and break even.

The utility providers insist there is production cost deficit which makes them run at a loss, looking at the pricing of their commodities.

At a public hearing in Koforidua yesterday organized by the PURC, representatives of the service providers struggled to court the sympathy of the public regarding increment in utilities.

Addressing the gathering on behalf of the Volta River Authority (VRA), Kofi Ellis, Planning and Business Development Manager, pleaded with the PURC for a 100 percent increment (15Gp per unit of power to 30Gp), causing an uproar from the gathering.

He stressed that payment of increased tafiffs would be easy if consumers learned to conserve electrical power.

Ebenezer Baiden, General Manager for Regulatory and Governmental Affairs at ECG, said his outfit was able to deliver on its promise – that it would replace its outmoded machines and equipment.

He noted that Koforidua and its environs used to experience low voltage but that problem had been solved because Koforidua has a new substation at a cost of GH¢20 million.

Power supply at Akwatia and Suhum areas, which used to be 11kv, had been raised to 36kv.

He disclosed that averagely, ECG adds 300,000 new customers every year. He explained that its resources are over-stretched and would need to build more new substations.

Cheers For GRIDCo
While ECG is crying for an adjustment from 16Gp to Gp35, GRIDCo wants to move its current price of 4Gp to 5Gp, earning applause from a cheerful crowd.

Ghana Water Company’s adjustment of GH¢1.70 per 760 litres to GH¢4 was not a welcoming news at all as the crowd started murmuring and shouted 'Why, why, why?

A commissioner of PURC, Daniel Owusu-Koranteng, who doubled as the chairman for the occasion, observed that much as utility providers are calling for increase in tariffs, the public is also yearning for quality service.

He noted that it hadcome to the fore that high tariffs might collapse small and medium scale businesses.

He therefore assured both the public and the utility providers of a fair play, adding that his outfit would take all the issues raised into consideration and see how to balance the equation and take an objective decision on the matter.

Joe Baiden of the Ghana Water Company (GWC) had earlier in his submission said currently his outfit operations cover about 64.3 percent of the nation.

He said the company needs to supply the country 250 million gallons of water a day but is only able to supply 192 million, leaving a deficit of 58 million gallons.

He said an amount of $768 million was needed for an additional 13% coverage.

According to him, GWC needs $2 billion to facilitate a nationwide coverage by 2025.

He emphasized that galamsey activities are really having a toll on their activities in the Easter Region as they need to spend more resources to treat water from polluted rivers.

Kofi Owiradu from GRIDCo said his outfit's production cost was on the rise while consumers paid less.

By Rocklyn Antonio, Koforidua