We, the Progressive Public Servants for the Total Overhaul of the Public Sector (PPSTOPS) have observed with deep troubles the statement (undated) issued on the above subject matter by the Public Utilities Regulatory Commission (PURC).

We wish to join organised labour, Civil Society Organisations (CSOs) and all well meaning Ghanaians who have already spoken on this matter to call for the immediate withdrawal of the approved tariffs. After a careful analysis of the issues involved, we believe that this tariff increase is scandalous, insensitive to the plight of Ghanaians and a wicked attempt to let Ghanaians bear the brunt of the inefficiencies of the utility companies. It lacks merit and makes no economic sense and we are calling on all Ghanaians to resist this tariff increase. These are a few reasons why we have come to this conclusion:

1. In the statement of PURC, they stated that “The adjustment in Tariff is largely driven by a shift in Generation Mix from about 58.0% Hydro and 42.0% Thermal in 2013, to about 27.0% Hydro and 73.0% Thermal in 2015”. The proposal for Tariff increase presented to PURC in August 2015 by Volta River Authority (VRA) says the Generation Mix is 45% hydro and 55% from other sources, not even thermal alone. These figures, according to the proposal, are as at 30th September, 2015. The 2014 Annual report of VRA on page 3 states “Hydro generation currently accounts for 60 percent of the total system supply”. The question we ask is where did PURC get its figures from?

2. In the Tariff proposal presented by VRA under justification for tariff request, the second point says “Depreciation of the Ghana Cedi relative to the US Dollars from GH¢/US$ 1.9988 in October 2013 to GH¢/US$3.5552 in August 2015 has eroded the value of the generation tariffs”. The question again we ask is, are they saying all the quarterly adjustments between 2013 and 2015 made no difference?

3. In production processes, your outputs determine how much input to use. This determines how efficient your production processes are. In VRA today for example, Output in terms of how much power they produce has declined hence “Dumsor” and yet input in terms of Salaries and other related expenses as they captured it in the proposal is hitting the roof. In 2013, GH¢188,153,000.00, in 2014, GH¢228,900,000.00 and in September 2015, GH¢208,380,000.00. And this is a company that is making loses. Production fell by 821GWh from 11,274GWh in 2013 to 10,543GWh in 2014 and yet other costs (cost excluding purchase of fuel, electricity and handling) jumped from GH¢332,273,000.00 in 2013 to GH¢567,047,000.00 in 2014. This does not make any economic sense.

4. Isn’t it also interesting that Water and Electricity are always increased at the same time and yet we are told that Power Purchase Cost contributed to the price increase in water?

For these and many other reasons which for lack of space and time this statement cannot capture, we are calling on PURC to unconditionally withdraw the tariff increase.

Charles Ayuune Akurugu

(Founder and Leader)