CUTS International raises concerns over 18.36% tariff increment by PURC, citing economic implications
CUTS International, a renowned research and public policy think tank, has voiced its reaction to the recent tariff increment by the Public Utilities Regulatory Commission (PURC) for electricity and natural gas. The tariff increase, which stands at 18.36% across all consumer groups, has sparked concerns about its potential impact on the economy and businesses already grappling with economic hardships.
The decision to raise tariffs was made following a review for the second quarter of 2023, with the aim of averting prolonged power outages and their detrimental effects on jobs and livelihoods. Additionally, the objective was to strike a balance between addressing the rising costs of operation and minimizing the burden on consumers.
In an interview on Wednesday, Adomako Kusi Appiah, the West Africa Regional Director of CUTS International, expressed surprise at the timing and magnitude of the tariff increment. He stated, “I did not see this coming at this time. The last time we had a tariff increment, we were surprised. While PURC gave the indication that it had been occasioned by the cedi-dollar fluctuations and the cost of gas and others, those things are fundamentally true. But I think that PURC should also be concerned about the impact of its actions on the macro-economic performance of the economy.”
Mr. Kusi Appiah further suggested that PURC should have considered waiting until the next quarter, particularly given the expectation of IMF funds to stabilize the economy. He emphasized that tariff increases should not be implemented arbitrarily and cautioned against PURC operating as a robotic entity that automatically raises tariffs whenever prices go up.
CUTS International raised concerns regarding the potential negative repercussions of the tariff increment on both consumers and the overall macroeconomic environment. With businesses already grappling with economic challenges, the organization urged PURC to carefully assess the economic implications of its decisions before proceeding with any further tariff increments.
The call by CUTS International for PURC to exercise caution and take into account the broader economic consequences of its actions reflects the organization’s commitment to ensuring a balanced and sustainable approach to tariff adjustments. As discussions and debates surrounding the tariff increment continue, stakeholders eagerly await further deliberations and potential measures to mitigate the impact on consumers and the Ghanaian economy.
