Palgrave Boakye-Danquah, the government’s spokesperson on Governance and Security, says the government cushioned Ghanaians during the deliberations that led to the increase in utility tariffs.
Speaking on JoyNews’ The Probe, he stated that proposals for tariff increases were made at a high rate, but the government significantly reduced them to ensure tariffs remained below 30%.
In the face of recent economic challenges, Mr Boakye-Danquah stated that this was done to ensure that Ghanaians could afford electricity and water, among other things.
“The utility companies’ proposals were far superior to the consideration that the PURC and government were able to put together.” Ghana Water proposed a 300% increase, while ECG proposed a 148% increase.”
“NEDCo also proposed a 113% increase, and VRA proposed a 37% increase.” When you look at all of these, it is clear that the government has mitigated the impact on the Ghanaian people, which we must appreciate,” he said.
The Public Utilities Regulatory Commission (PURC) announced tariff increases effective September 1, 2022 on August 15. Electricity and water rates are expected to rise by 27.15% and 21.55%, respectively.
In the same release, the PURC acknowledged consumers’ economic difficulties, but stated that without these tariff increases, utility providers may fail to meet their mandate.
However, in response to the announcement. Arise Ghana, a pressure group, has called for the utility tariff increase to be halted immediately.
The timing of the upward adjustment, according to the group, is poor.
Bernard Mornah, a leading member, stated at a press conference on Thursday, August 18, that the increase will worsen Ghanaians’ plight.
According to him, such a review will discourage consumers due to the current economic downturn.
Mr Boakye-Danquah, on the other hand, stated that the government had already held consultations with many entities, including select committees in parliament, CSOs, and others, in order to arrive at the new increment percentages.
He stated that the government truly cares about the people and made certain that the tariff increase did not adversely affect people’s livelihoods.
“Our tariffs are less than 30%, our lights are always on, our water is always flowing, and a lot more.” infrastructure work is going on in government,” he added.