CUTS International, a research and public policy think tank, has responded to the Public Utilities Regulatory Commission’s (PURC) recent rate increase for electricity and natural gas by 18.36% across all consumer categories.
The decision to raise tariffs was decided following a study for the second quarter of 2023 in order to avoid protracted power outages and their negative impacts on employment and livelihoods, while also reducing the impact of rate hikes on customers.
In an interview with Citi News, Adomako Kusi Appiah, the West Africa Regional Director of CUTS International expressed surprise at the tariff increment, stating, “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 suggested that PURC should have held on until the next quarter, especially with the expectation of IMF money to stabilize the economy.
He added that “tariffs are not supposed to increase arbitrarily and that PURC cannot operate like a robot that increases tariffs when prices go up.”
He further cautioned that the tariff increase could have a negative impact on the economy and businesses that are already struggling due to economic hardships.
The organization called on PURC to carefully consider the economic implications of its decisions on consumers and the macroeconomic environment before making any further decisions regarding tariff increments.
