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The utility institutions in the country have proposed an increase of over 100% in utility tariffs to address their debts and improve service quality.
However, during a discussion on GIFTs FM Morning Show, dubbed Anopa Bosuo, chaired by Kwaku Mensah Abrampa, the National Chairman of the Food and Beverages Association of Ghana (FABAG), Rev. John Awuni, expressed opposition to this proposal. He argued that the current need in the country is not an adjustment of tariffs, but rather a comprehensive RESET of the energy and utility sector. He noted that increasing tariffs is not a novel solution, as the energy sector continues to face recurring or worsening crises, making tariff increments unnecessary.
Rev. Awuni emphasized that high utility tariffs contributed to the electoral defeat of Akufo Addo and the NPP, leading to their replacement by the NDC, who were expected to reset and realign the energy sector to benefit residents. Consequently, he urged that tariff increases should not be pursued under the NDC government. Instead, President Mahama should focus on addressing systemic losses, corruption, inefficiencies, and inflated contracts within the energy sector.
Rev. Awuni clarified that FABAG is not opposed to tariff adjustments, but supports adjustments tied to improved performance, urging the energy and utility sector to enhance service delivery, which would naturally justify any upward tariff adjustments.
Rev. John Awuni expressed concern regarding an approximately 70% decline in the sales of food and beverages in the market. He highlighted that the Ghana Revenue Authority is facing challenges in meeting its targets, as a decrease in sales makes it difficult to collect taxes. He emphasized that businesses are beginning to suffer from exchange rate losses due to the current depreciation of the Ghanaian cedi against international currencies.
Furthermore, he stated that if the continuous increase in tariffs is not addressed, it could potentially undermine the vision of the NDC’s 24-hour economy and jeopardize the survival of businesses that are already struggling.
He additionally urged the energy and utility sectors to enhance their debt collection processes and initiate a comprehensive revenue mobilization campaign as part of their strategy to alleviate the sector’s debts. He referenced instances where the leadership of the energy sector, under the previous administration, undertook a nationwide debt collection initiative, which resulted in positive outcomes for the sustainability of both the energy and utility sectors.
Story By: Kwaku Mensah Abrampa (GIFTs FM -Dormaa Ahenkro)