The Public Utilities Regulatory Commission (PURC) is worsening the economic conditions of Ghanaians with increases in tariffs, Mr John Jinapor, Member of Parliament for Yapei/Kusawgu, has said.

He said Ghanaians are already saddled with a lot of economic challenges, therefore, the PURC should not overburden them.

Mr Jinapor, also a former Deputy Minister of Power, was reacting to the upward adjustment in water and electricity tariffs as announced by the PURC in a statement on Monday, 30 September 2019.

The PURC’s statement signed by Mami Dufie Ofori, Executive Secretary said: “Following a review of electricity and water tariffs for the fourth quarter 2019 which is from October – December 2019, the Public Utilities Regulatory Commission wishes to announce for the information of consumers of electricity and water that there has been an upward adjustment in the existing tariffs. The increase is 5.94% for electricity tariffs and 2.22% on water tariffs across board for all customer categories effective October 1, 2019.

“The Automatic Adjustment Formula (AAF) is a tariff mechanism that seeks to track and incorporate movement in key determining factors to reflect the real cost of electricity and water quarterly.

“The following factors were considered in computing the automatic adjustment formula: Ghana Cedi-US dollar exchange rate, inflation, price of crude and natural gas, fuel mix (crude, oil and natural gas, generation mix (hydro and thermal), power purchase cost, electricity cost (a major cost component in water production)”.
The Commission said it, “however, wishes to restate its commitment to embark on effective tariff monitoring programme aimed at providing the end user improved quality of service.”

But speaking to Accra-based Joy FM on Tuesday, 1 October 2019, Mr Jinapor said: “This is not tenable because the Monetary Policy Committee which is the custodian of, or,  is the official source when it comes to the exchange rate determination at the Bank of Ghana indicated that the cedi has been stable.

“When you issue a political statement and just say that you increased it by 4.94 and you expect that we should swallow that hook, line and sinker, it begs the issue.

“This is the same PURC that is creating this mess for us. I will plead that we interrogate this matter. The people of Ghana determine where we move as a country and, so, the PURC cannot be that opaque, they ought to be transparent, they ought to be accountable to the people of Ghana.”