A former Deputy Minister of State, Mr Abu Kasangbata, has raised concerns regarding the timing and rationale behind tariff hikes in utilities, arguing that they will burden the already struggling Ghanaians.
According to Public Utility Regulatory Commission, the recent increments in water and electricity tariffs, which stand at 1.86% for water and 3.02% for electricity, are largely due to inflationary pressures, fluctuations in the exchange rate, and the rising cost of production materials such as chemicals for water treatment.
The Ghana Water Company Limited (GWCL) has repeatedly expressed concern over the high cost of chemicals required for water production, citing these as a primary reason for advocating tariff increases.
Despite the explanations, Mr Kasangbata questioned the appropriateness of such increases at a time that the economic indicators in Ghana were not reflective of positive growth or stability.
He noted that while utility providers were facing their own challenges, the burden should not b
e shifted entirely onto citizens who are already grappling with the high cost of living.
Mr Kasangbata has stated that the current economic situation in Ghana was marked by excruciating hardships for Ghanaians struggling to meet basic needs.
‘Increases in tariffs on essential services like water and electricity only exacerbate the suffering of Ghanaians, many of whom are already underpaid and overburdened.
A key point of contention is the government’s decision to sign an agreement with the International Monetary Fund (IMF)’
Mr Kasangbata has suggested that the conditions set by the IMF, which included generating revenue through taxes and tariffs, were being imposed on the populace without consideration of their capacity to absorb these costs.
He argued that the current administration had lost focus and direction in managing the economy, and this had resulted some poor policy decisions, such as the tariff hikes.
Source: Ghana News Agency