Organised Labour has waded into the fierce public condemnation of the recent upward review of utility tariffs, insisting the over 50 percent hike in water and electricity prices is wrong.

According to the labour unions, following consultations with the regulator the expectation was that the new tariffs would not exceed 50 percent even though the utility companies proposed an increase of between 129 and 400 percent.

“We also expected the implementation of any new tariffs to start next year,” Organised Labour said in a statement Tuesday.

An increase in water tariff by 59.2 percent and electricity by 67.2% Monday by the Public Utilities Regulatory Commission (PURC) has met with public outcry.

Consumers say the tariff increases, expected to take effect from Monday December 14, 2015, are high and does not consider economic challenges facing Ghanaians currently.

Chief Executive of Consumer Rights Protection Agency, Kofi Kapito, for instance thinks the hikes in electricity and water tariffs did not consider the interest of Ghanaians.

The Industrial and Commercial-workers Union (ICU) has described the new tariff as outrageous.

The PURC has defended the utility increases, maintaining that it is in the best of interest of consumers.

Nana Yaa Jantuah

Director of Public Affairs at PURC, Nana Yaa Jantuah explains that the increment in power for instance is due to new power generation facilities that have come on board.

However, in a statement jointly signed by TUC General Secretary, Kofi Asamoah, and representatives of Ghana Federation of Labour (GFL), Ghana National Association of Teachers (GNAT), Industrial and Commercial Workers’ Union (ICU), National Association of Graduate Teachers (NAGRAT), Ghana Medical Association (GMA), Judicial Services Staff Association of Ghana (JUSAG) and the Coalition Of Concerned Teachers (CCT), the labour unions make the follwing demands:

(1) PURC cuts down the utility prices further;

(2) PURC suspends the implementation of any new tariff until there is stability in the supply of power.

They also say “The utility companies must be compelled by the PURC to reduce their technical and operational inefficiencies as the condition for tariff review.”

Organised Labour’s position is that the PURC should have first considered the availability and reliability of power before a review of tariffs.

“We maintain that it is only when the people of Ghana, including workers in both formal and informal sectors of the economy, are sure of a reliable supply of power and water that they can be convinced to pay higher tariffs. Ghanaian consumers are already paying heavily for the depreciation of the Ghana Cedi and the high inflation,” the Labour Unions said in the statement.

Read Organised Labour's statemnet below:

ORGANISED LABOUR PRESS STATEMENT ON UTILITY TARIFF INCREASES

The PURC has approved new rates of utility tariffs. In a statement issued on Monday, 7th December, 2015, the PURC announced a 59.2 percent increase in electricity tariff across the board and between 69 and 89.8 percent increase in water tariff.

Our position is that PURC should have first considered the availability and reliability of power before a review of tariffs. We maintain that it is only when the people of Ghana, including workers in both formal and informal sectors of the economy, are sure of a reliable supply of power and water that they can be convinced to pay higher tariffs. Ghanaian consumers are already paying heavily for the depreciation of the Ghana Cedi and the high inflation. Real wages have fallen drastically especially since 2012.

We have been following the debate and discussions in the media since PURC announced the newly approved tariffs. The people of Ghana are still doubting   whether these tariff increases are going to solve the “dumsor”, as the utility providers would like us to believe.

Following our consultations with the PURC, we did not expect any increase in tariffs beyond 50 percent as against the 129 to 400 percent proposed by the utility companies, on condition that the power supply would have stabilised. We also expected the implementation of any new tariffs to start next year.

As workers we are worried about the ever increasing utility tariffs which do not match the rate of increase in incomes. We are also concerned about the poor macro-economic performance and the technical and operational inefficiencies of the utility companies which have contributed greatly to the frequent hikes in tariffs.

We demand, as a matter of urgency, that:

(1) PURC should reduce the tariffs further;

(2) PURC should suspend the implementation of any new tariff until there is some stability in the supply of power; 

(3) The utility companies must be compelled by the PURC to reduce their technical and operational inefficiencies as the condition for tariff review.

KOFI ASAMOAH

SECRETARY GENERAL OF TUC

ALBERT YAMOAH

GHANA FEDERATION OF LABOUR (GFL)

AHENAKWA-QUARSHIE

GHANA NATIONAL ASSOCIATION OF TEACHERS (GNAT)

EMMANUEL BAAH BENIMAH

INDUSTRIAL AND COMMERCIAL WORKERS’ UNION (ICU)

CHRISTIAN ODUE

NATIONAL ASSOCIATION OF GRADUATE TEACHERS (NAGRAT)

DR. JUSTICE YANKSON

GHANA MEDICAL ASSOCIATION (GMA)

ALEX NARTEY

JUDICIAL SERVICES STAFF ASSOCIATION OF GHANA (JUSAG)

VIDA SAPABIL

COALITION OF CONCERNED TEACHERS (CCT)

DATED: 9TH DECEMBER 2015

ACCRA