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A senior economist at the University of Ghana, Dr. Eric Osei Assibey has described as “weak” the reasons given by the Public Utilities and Regulatory Commission (PURC) for the hike in electricity tariffs. The PURC announced an increase in electricity and water tariffs by 59.2% and 67.2% respectively ahead of the Christmas season.
The proposed increment in electricity, which takes effect next week Monday, is largely due to the change in the generation mix. But, in an interview with Citi News, Dr. Osei Assibey said the reasons being provided are not convincing enough. “I’m not too convinced about the reasons or assumptions underlined for this adjustment because they are quite weak. First of all, what is the cost of production, what are the key factors that drive the cost and exchange rate. The exchange rate has relatively remained stable over the last few months though it has been depreciating,” he added. Meanwhile, the decision to increase utility tariffs raised a public outcry with a lot of groups including the New Patriotic Party describing it as “sheer wickedness”and “evil.”
A statement signed by the NPP’s Acting Chairman Freddie Blay, said the increase can only be described as wicked and insensitive considering the economic and power challenges being endued by Ghanaians. “This is sheer wickedness! It is evil, uncaring, reckless and absolutely unacceptable. It is the highest level of insensitivity ever witnessed by Ghanaians under the Fourth Republic, and certainly just before Christmas and in a year that Ghanaians have known nothing but untold sufferings and hardships,” the party added.
