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El Samuels: MBN360
The Institute for Climate and Environmental Management (ICEG) has criticized the Public Utilities Regulatory Commission (PURC) for approving a tariff increase, saying consumers shouldn’t bear the burden of utility inefficiencies. ICEG accused the Electricity Company of Ghana (ECG) of hiding behind the tariff increase to cover up its inefficiencies, pointing out that the proposed 225% increase is unacceptable.
ICEG emphasized that the tariff increase won’t solve ECG’s problems, as the root causes are high commercial and technical losses, poor governance, and wastage. Instead, ICEG recommended performance-based regulation, loss reduction programs, and public-private partnerships as more sustainable strategies.
The Ghana Union of Traders Association (GUTA) also slammed the PURC’s decision, saying the tariff increase will burden consumers and won’t address the utilities’ inefficiencies. GUTA is calling on the government to tackle corruption and wastage in the utilities sector.
ICEG contends that consumers should not be made to consistently pay for systemic inefficiencies and high transmission losses.
“Value-for-money should be a core basis upon which tariff adjustment should be premised,” the institute stated.
ICEG highlighted that the new tariff structure does not protect consumers from the frequent upward quarterly adjustments, which are triggered by fluctuations in exchange rates and inflation.
They argue this creates uncertainty and makes financial planning difficult for households and businesses.
The criticism comes amid ongoing public concern about the cost of living. The PURC’s tariff announcement has been a subject of debate, with utility companies arguing for cost recovery while consumer advocates demand relief.
