AGI calls on utility providers to credit customers
The Association of Ghana Industries (AGI) has called on the utility providers to credit customers, especially industries, who paid bills based on the new tariffs increases.
It also called for suspension of the implementation of the adjusted tariffs until completion of the review as demanded of the Public Utilities Regulatory Commission (PURC) by government.
Addressing a press conference in Accra on Wednesday, Nana Owusu-Afari, President of AGI said, even though the Association was not against tariff increases, it believed the recent increases were too astronomical and unfriendly to business growth and competitiveness.
He, therefore, gave a two-week ultimatum to the PURC to complete review of the negotiations, or AGI would advise its members.
Nana Owusu-Afari said contrary to the percentage increment announced by PURC, “we have received input-output cost analysis of electricity consumption from our members, which supports our position that tariff increases ranges between 131 per cent and over 300 per cent, which is astronomical”.
He said the maximum demand surcharge had also increased by 1,300 per cent.
Nana Owusu-Afari said in view of the situation, there was the need for re-classification of the non-residential and commercial class to separate Small and Medium Enterprises (SMEs) from the large-scale commercial and service enterprises.
He said PURC should consider the re-instatement of the tariff adjustment mechanism, which ensured regular increment on gradual basis instead of leaving a long gap and suddenly imposing high utility rates on consumers.
Nana Owusu-Afari called on PURC to consider adopting AGI’s recommendation of two step increase for 2010 and 2011, which was 40 per cent immediate increase effective July 1, 2010, and 20 per cent increase in January 2011 and thereafter apply adjustment mechanisms.
He called on utility providers to institute measures to improve on operational lapses such as illegal connections, recovery of public institutions’ unpaid bills, reduce corruption and improve quality of power supply to customers.
Some members of AGI said they were at a fix, whether to increase prices of commodities to correspond with the tariffs or close down and lay-off labour which had consequences on societal security.
Representatives of Blue Skies, a manufacturing company, said if the new tariffs were not immediately reviewed, management would be compelled to retrench its estimated 1,600 work-force because the new tariffs could not support its export arrangement.
Source: GNA