Nana Yaa Gyantua of the PURC

Sachet water producers demand answers from PURC

The Association of Sachet Water Producers has cried foul over what it termed as the discriminatory tariff imposed on its members as against the breweries and other water users in the country.

Advertisement

The association said for the Public Utilities Regulatory Commission (PURC) to cause members of the association to pay GH¢50.76 per cubic metre of water as against GH¢10.07 for the breweries was most unfortunate and demanded an explanation for the wide disparity.

The President of the association, Mr Magnus Nunoo, in an interview with the Daily Graphic in Accra yesterday, said: “The PURC seems to be encouraging the people to drink alcoholic beverages when they are thirsty rather than water because the prices of water would be higher than beer among other alcoholic drinks.”

Timing

PURC’s action comes at a time when the commission is under severe condemnation over what has been described as unacceptable deceit of the public as far as the percentage increase in tariffs on utilities is concerned.

The commission announced a rise in tariffs - 67 per cent for water and about 59 per cent for electricity - a few weeks ago.

However, evidence indicates that the utility companies are charging more than 100 per cent when consumers had not been told about anything to the contrary.

The situation has forced some service providers to increase their rates astronomically as they contended that they could no longer accommodate the sharp increases in their cost of operations.

The situation is likely to shoot the rate of inflation up from its current rate of about 17.7 per cent because of the wanton increases in prices of services across board.

Earlier rate

Mr Nunoo said the players in the industry were paying a flat rate of GH¢3.8 per cubic metre of water consumed and noted that “much as we will welcome some change in

what we used to pay, we did not expect it to be this high and to make matters worse, it is so high as compared to the breweries”.

“We demand answers regarding what has happened so that we can tell our consumers when they ask why we have increased the prices of our products,” he said.

According to him, the discriminatory rate could not be absorbed in any way and noted that the industry players would be forced to pass on the increase to the public so that the operators in the industry could break even.

Consequences

He said the industry was likely to see many people lose out because of the unbearable cost of operations.

“Already we are paying so much for consuming electricity and that alone is eating us up in a manner that leaves us with the only option of pushing everything onto the consumer,” he said.

The industry employs several thousands of people both directly and indirectly across the country.

Many engage in the sale of sachet water to either pay school fees or fend for themselves or both.

It is one business which has in the last few years absorbed a large number of people who would, hitherto, be walking in the streets doing nothing.

Mr Nunoo said the situation was dire and difficult to bear.

News conference

Meanwhile, the association is preparing to hold a news conference by mid-week to register its displeasure at the latest turn of invents.

It will also use the occasion to demand answers from the PURC which seems to have neglected its responsibility to protect the public from abuse by the two utility companies,

Advertisement

Electricity Company of Ghana (ECG) and the Ghana Water Company Limited (GWCL), which are operating a complete monopoly in the country.

Under normal circumstances, monopolies as is the case of ECG and GWCL invest in latest technology and machinery in order to be efficient and to avoid competition.

Unfortunately, however, the case with the two utilities in the country is different as they consistently provide poor level of services and also offer no consumer sovereignty.

With the aid of the industry regulator, consumers, who are to be protected under such circumstances, are rather overburdened with low quality services.

Advertisement

Connect With Us : 0242202447 | 0551484843 | 0266361755 | 059 199 7513 |