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Opinion

Are the projected utility price hike sustainable?

PURC hinted a possible increment some months ago ranging from 97% for water and 150% for electricity, though our intelligence has it that it will be between 50-60% we at SONETCO INSTITUTE (SI) wants this issue discussed devoid of partisan politics. As a socialist institution we find it difficult to accept the huge tariffs increment being suggested,we hold the view that,looking at the world's economic dynamics,it has become unscientific to adopt the subsidization policy but wouldn't recommend any price adjustment which would burden the ordinary Ghanaian.We think government must as a matter of urgency take a look at activities at the various utility providers outfits,the wastage and leakage there are so outrageous making accepting such increments very difficult. But we will want the current party NDC in power which pride itself with socialism to ask itself if this astronomic one time increment fits the ideology that takes a stand for the masses. Specific agencies desiring the increment are VRA, ECG, GWCL, GRIDCO, NEDco etc. What warrants the increment is operational cost, administrative cost etc. But we want to know how can we have value for our money? Taking Anas's report as a litmus test with ECG, there is pure evidence that it has a bad debt recovery system or strategy in place and should it be the cross for consumers to bare? There is so much wastage alleged to be in tune of 21%, which is no fault of consumers but the impending hikes suggest consumers must pay full cost. We are all witnesses to how poorly GWCL attend to wastage when notified. It is worth noting, that high utility bills has the tendency to disrupt national development because the two utilities have a direct bearing on the cost of living and also the cost of doing business in the Country. SI appreciate that as businesses, the ECG, GRIDco, VRA, NEDco, GWCL etc need to operate in a manner to recover cost of operations but operating a system that usually leads to wastage and the inability to recover debts owed them does not warrant the consumer, both domestic and industrial to suffer for their inefficiencies. Aside the major energy crises, can we say we have found value for our money? Before government endorse these hikes, what is the role of PURC in making sure we get the close to the best service Ghanaians deserve.? SI really wants to see a PURC that would be seen by the masses as an entity looking out for the interests of its stakeholders at all times especially the consumers. It will even be reassuring for the public to know that the PURC have put in place interventions that they can use to sanction the Utility Service Providers should they fail to live up to expectation. Per our research,we know that all these sensitive companies providing these services are suffering from serious financial crisis and need immediate reliefs,but we would recommend that,such relief policies and decisions shouldn't suffocate the ordinary Ghanaian.We also wouldn't like governments to suffer unnecessarily from inefficiencies passed on the citizens by these providers. What role is consumer protection agency playing to make sure consumers are not faulted to cater for lapses by these utility companies. We remember that utility tariffs were last increased in 2010, 3 clear years ago with 89% increases in electricity and 36% in water but service by these providers has not been improved as promised by these Institutions. How will government through the various sectors monitor these companies to make sure, Ghanaians are not taken for granted. The work output and delivery of these agencies do not justify these adjustments creating unnecessary pressure on government.Sonetco institute recommend that,such adjustments must be effected in a way not to over burden the ordinary Ghanaian.We must also begin looking at other energy providing opportunities which are available to us. There is perceive corruption in theses companies that impede true revenue generation, example is the accusation of pre-paid meters. And pragmatic steps to curb illegal connection. For a start,we recommend price adjustment ranging between 50-60% with stringent measures to weed out certain negativities within these utility outfits.We have gotten to a level in our national life that,serious and effective measures must adopted to efficiently monitor activities within state departments else,governments would suffer undue pressures from such decisions. We also advice consumers to also prepare their minds to pay realistic prices if government put out initiatives to sanitize the system,we must begin to adopt efficient domestic policies to save energy and other utilities.The era where government takes full responsibility of such services or subsidizing them are outmoded and unconventional,today the German Chancellor is nicknamed "queen of austerity",serious nations are becoming realistic formulating decision to survive their economies and we can't do otherwise if we really want to develop every department of our national life We herein want to take this opportunity to salute the government for boldly taking measures to wipe off some unnecessary financial burdens on government institution based on populace inclinations. Few governments would have the political courage to venture such arena,and we pray that,never must we go back to the era where political heads initiate policies which would increase their surplus values to the detriment of the proletariats or the masses. Long live Sonetco Institute Long live Ghana

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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.