Proposed electricity tariff increment has nothing to do with current crude, gas prices – CUTS International

• CUTS International has explained that there is no correlation between upward adjustment of electricity and prices of crude oil and gas

• It is advocating that the ECG stops plans to increase tariffs in the coming days

• The ECG says it needs an increment in its tariffs to aid its operational activities.

CUTS International, a research and public policy think tank, has stated that the proposed upward adjustment in electricity tariffs has nothing to do with the prices of crude oil and gas on the international market.

According to them, there is no correlation there between the two, hence their decision to kick against the upward adjustment of electricity tariffs which will start in July.

They said the new development will only burden Ghanaians.

In an interview with Citi Business News monitored by GhanaWeb, the West Africa Regional Director for CUTS Accra, Appiah Kusi Adomako, stated that there is no point in adjusting the tariffs upward at the moment due to the high rate at which crude oil and gas is being sold on the market.

“Crude oil prices and gas prices have not gone up that much, so if you’re talking about electricity, then it leaves me with the doubt of the rationale on why these companies are asking for tariff increases at the time when the global prices of these goods have remained stable. I believe that PURC should be able to stand in for consumers and users of electricity and tell them that we’ll not be able to allow this.”

“In the past, whenever the prices of crude oil are going up, these companies could gang up and come around on three occasions always ask for an increase in prices. But now we know that on average, prices of these goods have remained stable,” he said.

However, the Consumer Protection Agency has noted that any possible increment in electricity tariffs at this time would be ill-timed.