The Minority in Parliament has indicated that the utility tariff increment announced by the Public Utilities Regulatory Commission (PURC) will only worsen the plight of Ghanaians in the country.
According to the minority, it has taken note of the significant utility tariff hikes for electricity and water, and a critical look at the tariff structure as announced which reveals that all residential consumers who fall between 0-300 kWh bracket have witnessed a price increase from GHp/kWh 65.4161 to GHp/kWh89.0422, representing an increment of almost 34%.
It stated that the bulk of residential consumers fall within the 0-300 kWh bracket and will therefore be adversely affected by the 34% adjustment.
“The country is already reeling under a galloping inflation estimated at about 32% thus, this utility tariff increment will only exacerbate the current high cost of living and will thus worsen the plight of the already impoverished Ghanaians.”
John Jinapor
The Ranking Member on Parliament’s Mines and Energy Committee, John Jinapor, in a press statement debunked the “misleading conclusion that the PURC has increased the Electricity tariffs by 27%” for all consumers. He stated that the minority is aware that the increment is on account of the worsening Ghana cedi against other major trading currencies.
Elaborating on the influence of the depreciation of the cedi on utility increment, Mr Jinapor explained that the cedi has in recent times witnessed a “free fall-reaching almost 50% and currently rated amongst the worst performing currencies” in the world.
Prior to the electricity tariff increments, Mr Jinapor explained that petroleum products at the pumps have equally witnessed a colossal increment of about 100%. Additionally, he noted that the Energy Debt Recovery Levy has seen an increase of 20% and the Price Stabilization and Recovery Levy is equally up by 40%.
Mr Jinapor emphasized that this is against the background that the volume of petroleum products consumed has increased by 35% from 4 billion litres to 5.5 billion litres.
“The Unified Petroleum Pricing Formula has been increased by 164%, whilst the BOST margin has been increased from 3 Pesewas to 9 Pesewas representing 200% increase. As if this is not enough, the fuel marking margin levy has also been increased by another 233%.”
John Jinapor
Government urged to alleviate plight of Ghanaians
The Ranking Member on Parliament’s Mines and Energy Committee, John Jinapor, expressed the need for government to intervene in the current economic crisis which has resulted in the utility increment among other things. He recounted that following the major tariff review in 2016, the NDC government intervened, resulting in a reduction of the rate of increment by close to 50%.
“We are of the strongest conviction that Government can and must do something to cushion Ghanaians who are going through unimaginable hardships with ever worsening poverty levels under the Akufo-Addo/Bawumia-led government.”
John Jinapor
Commenting on government’s announcement that an unexpected windfall of about USD500, 000 from Ghana’s share of petroleum resources was accrued in the 2022 mid-year budget statement, Mr Jinapor revealed that the statement clearly means government is making huge unanticipated revenues from crude exports, hence the need to cushion the suffering masses from these windfalls.
Mr Jinapor further cautioned the PURC to refrain from “capturing the AKSA plant” which has had its contract tenure expired in the “price build-up since that will be illegal”.
READ ALSO: PURC To Increase Water And Electricity Tariffs, Effective September 1
