Two policy think tanks have called for full public disclosure of the data and methodology used in determining the tariff rates by the Public Utilities Regulatory Commission (PURC).
The two noted that the recent 2.43 per cent tariffs increments announced by the commission and scheduled to start today was outrageous.
In a statement, jointly signed by West Africa Regional Director of CUTS International and Benjamin Nsiah, Executive Director of CEMSE, the civil society organisations (CSOs) and copied to The Ghanaian Times, stated that the tariff adjustment violates Section 3(c) of the PURC Act 538 of 1997, which mandates fairness in electricity pricing to benefit government, producers, and consumers alike.
The CSOs argued that consumers had anticipated a reduction in electricity tariffs due to the cedi’s significant appreciation against the dollar and declining inflation both critical indicators used in determining electricity pricing.
They explained that the cedi appreciated by over 30 per cent between the first and second quarters of the year, moving from GH¢15.70 to GH¢10.31 per dollar.
This, they emphasised, translated into overpayments by end-users and generated approximately GH¢1 billion in windfall revenues for the government and distribution companies, which could have been used to clear arrears or finance emergency power supply, rendering the new tariff increase unjustifiable.
They further criticised the PURC for relying on a miscalculated inflation rate of 20.67 per cent, instead of the current rate of 18.4per cent.
The CSOs also argued that the minor increase in gas prices by 1 per cent or $0.08 had a negligible impact on overall cost and could not reasonably support the tariff hike.
The CSOs questioned why the PURC cited a GH¢488 million deficit without accounting for the earlier windfall from currency gains.
BY TIMES REPORTER
