Reverse utility tariff hikes – CPP

The Convention People’s Party (CPP) has expressed worry about recent increases in utility tariffs, saying that  the move underscores the insensitivity of government in matters affecting the well-being of the people.

“In the past 10 months the government has blamed everyone but itself for the difficulties we now find ourselves in, in all cases involving the mismanagement of the economy. Salaries paid to workers of the nation were said to blame for budget deficit from the previous years, giving the impression that workers paid the increases to themselves.”

These were contained in a statement signed by Mr Ernest Afram, Deputy Director of Communications of the CPP, and copied to the Ghana News Agency on Thursday.

According to the statement, the rot exposed in the GYEEDA report which highlighted some  failures was all dumped on a few low grade officers and forwarded to the Attorney Generals Department for prosecution without addressing the fundamental question of what happens to the leaders in whose trust the nation’s purse had been entrusted but who failed to put in place basic guidelines to ensure value for money.

“All these notwithstanding, the nation has been left to bear the consequences with increases in fuel prices, increases in taxes, import duties and slapping a 5 per cent stability tax on businesses.

“As if all of this was not enough, the already over-taxed and overburdened people are now being slapped with a 79.8  per cent increase in electricity tariffs and a 52 per cent increase in water tariffs”, the statement said.

It cited the four main justifications given by the power generators for the increases, namely increased Cedi-Dollar exchange rate, increased crude oil price, increased thermal percentage in the generation mix and increased LCO and Gas requirements, but noted that all of those pointed to the failure of successive governments in implementing the right policies to stabilize the cedi and the total lack of foresight of government in setting its priorities.

“The cedi has lost about 60 per cent of its value since the last utility tariff increases in 2010 as a result of which it now cost 60 per cent more generating and maintain our power generation infrastructure. We do not think it fair to the good people of Ghana to saddle them with the government’s failure to stabilize the currency. Government should be made to account for and take responsibility for its stewardship,” said the statement.

It added that the recent increases were particularly insensitive because it would not only visit untold hardships on the people but also place serious financial burden on the ordinary people.

“For a good percentage of people, the primary source for safe drinking water is generally via ‘pure water’ or bottled water. Given the recent 20% increase in transport fares coupled with the 80% increase in electricity tariffs and 52% increase in water tariffs, this could result in a 100% increase in prizes of pure water and bottled water,” the statement explained.

It said the people of Ghana had endured the failures of successive governments in providing even the most basic of amenities, adding that the people of Ghana could no longer  continue to shoulder the consequences of the mediocre policies of government.

The CPP therefore called on government to intervene and reverse the recent tariff increases to levels in sync with the people’s ability to pay.  It said the government should in the long run take serious steps to rein in the continuous depreciation of the cedi to stall the effect of the sliding value of the currency on the cost of electricity generation.

“Government should work studiously to complete work on the Atuabu Gas plant. We do believe that if the government had prioritized work on the completion of the Atuabu Gas plant, most of the power generation problems we were confronted with in the early parts of the year would have been avoided.”

The CPP further urged Government to, in the long term, look to cheaper and alternate sources of generating power, including giving tax credits or incentives to individuals or institutions who install solar panels in their facilities.

Source: GNA