Utility Price Hike ‘Insane’

By: Zulaihatu Abubakar

The investment community in Ghana is describing the recent hike in public utility tariff prices as unthinkable and insane, which could militate against public good and accelerated national development.

The recent increase in end-user price of water and electricity by the Public Utility Regulatory Commission (PURC) has become a source of worry to consumers especially those in the recycling industry, who use water and electricity in their daily activities.

These companies who usually gather sachet rubber for recycling, which in itself has become a source of income for some Ghanaians, are in the process of increasing their products due to the increase in utility bills.

Last Wednesday, the Public Utility Regulatory Commission (PURC) announced new tariffs user rates at a press conference in Accra.

Consumers of electricity and water will have to pay up to 78.9% and 52% more for electricity and water respectively effective from today 1^st of October.

In an interview with The Republic, the financial controller of one of the biggest recycling company in Ghana, Top Industry Mr. Prakh, revealed that, his company is being forced to increase its products due to the recent increment of water and electricity prices.

He describes the process used by the PURC as ‘insane’ in utility tariffs regime, adding that, “the process should be a gradual thing which should be done annually.

The 78.9 and 52% increase is a heavy burden on us especially because we deal with water and electricity respectively”.

He said, the sachets of improperly disposed rubber collected goes through different process before producing the finished goods which are used to manufacture plastic bags in the country; and this is by the use of heavy equipment which uses electricity and water to carry out the operation.

According Mr. Prakh, his company receives GH¢1,000 as an electricity bill which automatically urge his outfit to increase its product which in return result in low productivity as consumers will not be able to buy.

To him, the best process of increasing utilities in the country should be done annually. 

“This should be a planned thing and should be done annually. You cannot just increase utility without considering the welfare of an ordinary Ghanaian and the country as a whole; to me the decision is totally ‘insane’”, he added.

He, however, pleaded with the Government to come to their aid to subsidize the utility tariffs to help them work effectively to serve the people of Ghana and contribute to saving the environment.