Putting us all in the mix of utility tariff adjustments

Tariff increases are inevitable for the service sector because operators of those services also depend on other factors to render such services to the public.

In view of this, whenever the prices of inputs needed to provide those services are increased, they affect the cost of production of services and naturally reflect on how much the public or consumers need to pay for such services.

It is this philosophy that has guided or influenced the adjustment of tariffs for utilities in many countries, including Ghana, over the years.

However, in a host of countries, the adjustment in tariffs is only done after extensive consultations with all stakeholders, including consumer-protection agencies which agree on the extent of the increase before it is even made public and implemented.

Whenever this has been lacking, it has resulted in demonstrations and other public disturbances that eventually lead to a backing down on any intended increase in service prices.

The situation has not been so different in Ghana, where different groups as well as the Trades Union Congress (TUC) have always bared their teeth when they viewed any increase in petroleum prices or utility tariffs as inimical to the working masses of the country.

The TUC has not yet commented on the latest announcement last Monday of an impending increase of 59.2 per cent for electricity and 67.2 per cent on December 14. We see the Public Utilities Regulatory Commission’s (PURC’s) announcement as a test case for the TUC.

If it is not able to influence a reduction of the intended increase, if indeed there is the need for an upward adjustment, nobody would take the TUC seriously again whenever they express their views on national issues because they would be seen as just blowing hot and cold air.

The general feeling among the public is that of shock and despair, after the announcement of the proposed tariff hike next week Monday, especially when the people had said they would not be able to pay high tariffs during the consultations with various stakeholders across the country.

Our worry is that many people have now become so apathetic in Ghana, and no one is willing to challenge the PURC for visiting astronomical tariff increases on Ghanaians. We are not asking for confusion and mayhem. We are asking Ghanaians to rise up to question decisions that put everyone under undue pressure, especially if they could be avoided.

The Daily Graphic is not amused that when it comes to asking for tariff increases, the cedi-dollar exchange rate, inflation and other economic matrix are always quoted, but when it comes to workers’ salaries there is a deafening silence on those same parameters.

We do not dispute that there would be times that service providers would have to increase tariffs because of rising cost of providing those services. Nonetheless, we believe that workers, who form the bulk of the consumers of those services and are only paid a minimum wage of GH¢10, should be factored in any mix and their views sought before such increases are effected.

If that had been done before the announced tariff increases, there would have been no hue and cry, because the workers’ concerns would have been factored in and so they would own the adjustment.

At this stage, the Daily Graphic asks of the whereabouts of the Consumer Rights Protection Agency and whether it is living up to its mandate of holding service providers to account.

We pray the PURC to reconsider its decision to up the tariffs of utilities and involve all in the discussions before settling on an increase that would be accepted by all.