An Economist, Dr Frank Bannor, has told the Electricity Company of Ghana (ECG) not to burden Ghanaians with debt due to their inefficiency.
The Electricity Company of Ghana has presented a tariff increment proposal to the Public Utilities Regulatory Commission (PURC). They want the tariffs to be increased by 148% for 2022 and with 7.6% average adjustments between the periods of 2023 to 2026.
According to ECG, the piercing proposed increment is as a result of the gap between the actual cost recovery tariff and PURC-approved tariffs as well as the cost of completed projects and financial sustainability.
In the same way, the Ghana Water Company is also proposing an increment in its tariffs to be able to at least recover its costs. The two companies report that PURC on several occasions has refused to fix tariffs in line with the cost of production, and that has affected their operations.
Dr Bannor making his submission on the ECG proposed tariff increment said “we need to hold the institution by their horns. Ghanaians and other relevant stakeholders must confront ECG so they put their house together least we will not pay for their losses’’.
“I read that ECG has made over 6 million losses and if that is the issue then we have a problem with them. Your inefficiency, generation and transmission loses and other dubious practices has led to huge money lost and now you are asking Ghanaians to pay? I am sad people are playing politics with this very important issue’’,he said.
He added that In 2010 there was a tariff increase by 89%, 10% in 2011, 78% in 2012, 28.3% in 2013, 59.2% in 2014. Under the government of President Akufo-Addo there was no increment in 2017, tariff was reduced astronomically in 2018 and in 2019 it was increased by 11%. He indicated that the available data shows the possibility of rejection of the proposed tariff increment or it being reduced drastically.
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