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Utility tariff increase must match services provided – Consumer Protection Agency

The Consumer Protection Agency is pushing for better service delivery from utility service providers after the recent increase in tariffs takes off.

Effective June, consumers will be paying extra for both the electricity and water they use as approved by the Public Utilities Regulatory Commission (PURC).

But the Agency says, regulators must ensure that the upward adjustments reflect favourable conditions for the ordinary user to enjoy value for money.

Kofi Kapito, Chief Executive Officer of the Consumer Protection Agency in an interview with Citi Business News said the PURC must strike a fair balance between the service providers and customers.

“When increases are made, they have to make sure that consumers enjoy uninterrupted supply of water and electricity all year round. But that doesn’t happen. So, I do not think PURC is fair to consumers. If customers are paying more, the services must improve. There are instances of power outage. Water is being rationed so it is not fair if prices are reviewed upwards without better services.”

Effective June 1, 2023, the cost of water services will see an upward adjustment for all consumer groups.

This follows a review and approval by the Public Utilities Regulatory Commission (PURC) for water tariffs to go up for the second quarter of 2023.

“In taking this decision, the commission took cognizance of the cost of electricity, increased volume cost of chemicals for raw water treatment, the Ghana Cedi/US Dollar exchange rate and inflation, a PURC statement issued on Thursday, May 18 said.

Under the same period, PURC has increased tariffs for electricity and natural gas by 18.36% across the board.

PURC explained that the decision was taken to balance the prevention of extended power outages and their adverse implications on jobs and livelihoods while minimizing the impact of rate increases on consumers.

“The Commission will continue to monitor the operations of the utility service providers to ensure value for money and quality service delivery”, PURC added in a statement.

Source: Ghana Business

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