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Scrap PURC, New Utility Tariffs Is Baseless, Insensitive - AFAG

AFAG says it considers the new utility tariffs announced by the Public Utilities Regulatory Commission as “insensitive, needless and baseless.”

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“There is neither a commonsensical nor economic basis for this increment,” AFAG said in a statement issued Friday, a day after the Commission announced that effective April 1, 2015, electricity and water tariffs will go up by 2.63 per cent and 1.06 per cent, respectively.

“Clearly it seems the PURC has become a tool for the oppression of business and domestic consumers,” AFAG asserted.

“At a time when “dumsor” [erratic power supply] has become “dum dum” [even more erratic], and businesses are laying workers off, it is amazing the PURC would allow this increment to go ahead,” the group said, adding: “As of today, coca cola has laid off 500 workers; so have many other businesses as a result of erratic power supply in order to stay afloat.”

According to the statement, “consumers are already paying market prices for utilities with no commensurate services from operators. For the past six years, the excuse for price hikes has always been “to improve services“, but shockingly, all increases have resulted in poor service.”

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AFAG has asked the PURC to “put its thinking cap on and reckon that any such increases without fixing “dumsor” is going to raise operating cost of businesses and would lead to further layoffs and consequently affects the larger economy.”

“AFAG is worried that with an economy in coma, flat manufacturing and stagnant salaries, the PURC would baselessly agree to increase tariffs. For the PURC to effect increases in utility prices in the hope of expected improvement in the energy crisis is like putting the cart before the horse. It is insensitive and AFAG can only surmise that this insensitive decision was arrived without much though and broader consultations.

“AFAG calls on the PURC to rescind this reckless decision. We further calls on Civil Society, Political Parties, Trade Unions, Association of Ghana Industries, among others, to show teeth and kick against this decision.”

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