Business News of Saturday, 20 May 2023

Source: otecfmghana.com

Consumer Protection Agency reject 18.36% tariff on electricity and natural gas

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The Consumer Protection Agency (CPA) have expressed shock over the proposed 18.36% increase in electricity tariffs in Ghana.

According to CPA, the Public Utilities Regulatory Commission (PURC) failed to engage them on the intended tariff adjustment, describing the move as one-sided decision which cannot be accepted.

Speaking on the Kumasi-based OTEC 102.9 FM's morning show Nyansapo on Thursday, May 18, 2023, the Executive Director for CPA, Nana Prempeh Okgyeabuo Aduhene said they are opposed to the increment and thus want further engagements between PURC and the public on the matter.

The PURC has announced an increment in tariffs for electricity and natural gas by 18.36%.

According to the Commission, the move is to avert power outages, otherwise known as dumsor which could harm individuals and businesses.

In a press release sighted by OTEC News, it stated that the review was to maintain the real value of the cost of supply of utility services.

PURC also blamed the depreciation of the local currency - Cedi against the US Dollar, high inflation, electricity generation mix, and the weighted average cost of natural gas (WACOG) as the factors that influenced the latest increment.

The Executive Director of CPA however said it was wrong for PURC to single handedly increase tariffs without the input of consumers.

"I was shocked when i learned about the increase, because we at the CPA, normally engages PURC on sensitive issues such as this before it is finally decided,” he said.

"As representatives for the public, we believe the PURC ought to have taking the input of stakeholders before coming out with the final percentage".

"We will write to the president over this blatant this deliberate attempt by the PURC to sideline CPA on important issues and find lasting solutions to the problem."