A University of Ghana Professor, Kofi Agyekum, has brilliantly explained why the recent tariff increments by the Public Utilities and Regulatory Commission are actually good for the populace.
Speaking on Kokrokoo on Peace Fm, Professor Kofi Agyekum, the Head of Linguistics at the University, said anything cheap leads to debt.
Hence, the decision by the utility regulator to increase tariffs in the face of rising costs is actually the right decision.
The PURC announced Monday, August 15th that the prices of electricity and water tariffs would increase.
Electricity tariffs are to go up by 27.15% whilst water is also to increase by 21.55%, effective September 1st.
“In balancing the interests of service providers and consumers, the PURC acknowledged that the very economic variables that have occasioned the steep increases proposed by the service providers also affect consumers.
“The commission admitted, however, that some level of increases in utility tariffs were inevitable if the nation was to avoid another dumsor and its attendant effects including job losses,” PURC Executive director Ishmael Ackah said.
He added: “The Commission therefore decided to increase the average end-user tariff for electricity by 27.15% and water by 21.55% effective 1st September, 2022.
“These rates, in view of the Commission, are sensitive and responsive to the positions of all stakeholders in the utility space in line with sections 3(c) of PURC Act 1997 (Act 538)”
Reacting to the news, the University of Ghana lecturer, popularly known as Opanyin Agyekum, said the decision was the right one to prevent plunging the service providers into debt.
“Cheapest is dearest. Anything that’s cheap results in debt . . . so, the increment is necessary,” Agyekum said.
Watch him make his opinion known below…