Tariff adjustments must go with efficiency
Ghana’s energy generation capacity has not been the best for quite some time now.
It is not a recent phenomenon, as we have experienced the challenge on a couple of other occasions.
It appears that as a nation, we have again situated the debate over the right energy mix and tariffs to pay in the confused arena of partisan politics.
Presently, productive activities are under strain, as the nation battles a debilitating load-shedding exercise which has become perennial, so to speak.
The power companies and, indeed, the President has, on a number of occasions, pledged to help resolve the load-shedding problem, otherwise known as ‘dumsor, dumsor’.
Unfortunately, we have been unable, as a nation, to find an antidote to power deficiency or shortfall. We think that the problem persists because we have not been able to find the right mix of generation to satisfy our power needs.
For a very long time and even now Ghana has relied on hydro power for electricity supply, although in our history thermal and solar sources have contributed to the generation mix.
Going forward, the option may lie with renewable energy which we can generate from wind and solar, as we have the sun shining throughout the year.
This has become very urgent in view of the fact that the cost of generating power from the present generation mix is quite expensive, necessitating the frequent adjustments in tariffs.
The question to ask at this stage is whether the consuming public can afford the tariffs that will be forthcoming from the automatic adjustment formula.
We should be thankful to the Public Utilities Regulatory Commission (PURC) for considering the plight of the ordinary Ghanaian in deciding that the tariff adjustments for the first quarter should be what consumers should pay and put on hold those of the second quarter because the rates will become unbearable in these trying times.
Whatever went into that consideration by the PURC, the Daily Graphic thinks the commission ought to do more to get the utilities — the Electricity Company of Ghana (ECG) and the Ghana Water Company Limited (GWCL) — to up their game, so that their services will meet expectation, even during load-shedding.
In line with best practices everywhere in the world, the customer is regarded as king or queen and treated with respect. But in the case of the GWCL and the ECG, perhaps because of their monopoly, they take their customers for granted.
The Daily Graphic’s problem with the PURC stems from its inability, as the regulator, to compel the utility companies, within the constraints of our present challenges, to satisfy and delight the customer.
If consumers are constantly informed about the challenges, the Daily Graphic believes they will appreciate the difficulties and accept tariff adjustments in order to keep the system in operation.
At this stage, we should understand that tariff adjustments are a necessary evil in view of the decision for cost recovery. But we appeal to the government to maintain the safety net for the poor and vulnerable.
