President John Evans Atta Mills has justified the recent hikes in utility prices announced early this week.
The Public Utility and Regulatory Commission on Tuesday announced a 42 per cent increase in electricity and a 33 per cent increase in water tariffs.
The increases have sparked widespread agitation among civil society groups, with pressure group Alliance for Accountable Governance swearing to hit the streets in protest against what they claim is a draconian tax and tariff regime under President Mills.
But in an interview with BBC, President Mills said the tariff increase was a necessary evil.
“Over the past five years or so, there is been no increase; the cost have gone up,” he said.
He attributed the erratic supply of electricity and water to lack of maintenance which has rendered the equipment used in power generation and distribution obsolete.
John Mills hoped the increases will go a long way to overcome the many challenges that have bedeviled the sector.
Story by Nathan Gadugah/Myjoyonline.com/Ghana
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