The National Chairman of the People’s National Convention (PNC), Bernard Mornah, says the new tariffs on utilities and levies on petroleum smack of insensitivity.
He says it is the height of insensitivity for government to increase fuel prices and water and electricity tariffs at the same time.
He is particularly shocked that a government of the National Democratic Congress (NDC) which resisted similar price increases in the past was now presiding over such unjustified upward price reviews.
He was speaking on Joy FM and MultiTV’s news analysis programme Newsfile, Saturday, January 23, 2016.
The PNC Chairman said the NDC actively supported protests by the Committee for Joint Action which “propounded many solutions to [power] deficit in the country.”
“I think that it is indeed a big disservice to the people of Ghana that at this particular time our government will be increasing utility prices and above all increase petroleum price,” he stated.
Mr. Mornah said, “we demonstrated against a government at a time crude oil prices had risen to $120 dollars per barrel and we made the argument that it is not a government’s lot to constantly increase fuel prices in accordance with world prices and that you have a social responsibility to the people of Ghana. Today, crude oil prices have fallen to 30 or 31 dollars per barrel and when prices have fallen to this low, prices are increases on the local market.”
The Public Utilities Regulatory Commission (PURC) in December last year announced increases in electricity tariffs by 59.2 % and water tariff by 67.2% for residential consumers.
The new tariffs took effect from December 14, 2015.
A statement signed by Nana Yaa Jantuah, Director of Public Affairs at the PURC noted, “The significant change and increasing dependence on thermal generation has greatly impacted on the cost of electricity generation and supplied by the Utility Service Providers.”
But Bernard Mornah rejected the PURC’s argument.
He said there was massive wastage which the utility companies were not addressing but are passing on their losses to the consuing public.
“If you take ECG (Electricity Company of Ghana) in particular, the wastage in the system is over 20 percent and it appears that over the years, very little is done to reduce the quantum of wastage in the system,” he stressed.
He doesn’t understand why the burden should therefore be put on the public to pay more.
Contributing to the discussion, the Communications Director of the New Patriotic Party, Nana Akomea shared the view that hikes in the utility prices are unjustifiable.
“We are a net importer of oil so when world prices fall, we gain more than we lose. We are gaining because we import more than we export,” he explained.
Nana Akomea added that Ghanaians have every reason to complain about the huge taxes.
“Inflation is 17% but then the government awarded workers a 10% increment, increase petrol by 27%, electricity by 70%, water by 67% and these increases are going to affect school fees, transport fares and everything. So already the ordinary Ghanaian is suffering because his pay rise is below the inflation rate, he is being reduced to nothing,” he added.
Source-myjoyonline.com
