Tuesday, April 13, 2010

HELPING ECG, GWCL TO DELIVER (APRIL 12, 2010)

FOR some time now, the country’s utility companies have been sensitising their consumers to the need for an upward adjustment in tariffs.
The Electricity Company of Ghana (ECG) and the Ghana Water Company Limited (GWCL) have, however, faced stiff opposition from a section of the public over their planned increases in tariffs.
The two companies insist on upward adjustments soon to save the utilities from collapse, citing the non-payment of bills by consumers, illegal connections and obsolete equipment as reasons for their move.
Consumers of the services provided by the utility companies oppose any planned adjustments on the basis that it will be unfair to pass on the inefficiencies of the companies to consumers.
Some domestic and commercial consumers of the services provided by the utility companies are engaged in illegal connection of water and electricity.
It is a worrying trend that even for prepaid meters, some consumers have found a way around the technology to cheat the service providers, with the active connivance of certain officials of the two companies.
The services of these two utilities are very key in the country’s development process, as their non-availability or inadequate supply can retard efforts to stimulate the economy to create jobs and improve livelihoods.
This means that all stakeholders — the government, the utility companies and consumers — should collaborate more to make the services available and affordable to everybody in the country.
We all acknowledge that there is no substitute for water, but even in the case of electricity, those who operate high- tech machinery cannot power those plants with generating sets. And in cases where individuals and companies resort to generating sets because of power outages or other reasons, the cost is so prohibitive that it drives production cost and family budgets through the roof.
No matter the circumstances, the Daily Graphic thinks consumers are better off with strong and efficient utility companies in the country. Being state assets, it is the responsibility of all Ghanaians to protect and support the two utility companies to deliver on their mandate by exposing those engaged in illegal connection of water and power.
The Daily Graphic is, therefore, worried about the revelation in the April 1, 2010 issue of The Mirror that out of a population of 10 million users of electric energy nation-wide, there are only about two million account holders registered with the company who pay for the electricity they consume.
The woes of the ECG, for instance, are worsened by unscrupulous individuals and corporate bodies who tap power illegally and thereby deprive the company of adequate revenue to expand operations and renew its plants.
The utility companies, since last year, have been knocking on the door of the Public Utilities Regulatory Commission (PURC) with proposals for the upward adjustment in tariffs. But the government and the PURC appear to be in a dilemma now because they are aware of the quality of services being provided by the companies, making it very difficult to overburden consumers with the extra burden of tariff adjustment.
The Daily Graphic is of the view that both parties have the force of argument to back their positions but, moving forward, we suggest that the parties engage in further dialogue to iron out any disagreements.
Recent power outages and the frequent drying up of taps indicate clearly that the ECG and the GWCL are facing operational challenges for which reason urgent steps should be taken to resource them. We believe that the renewal of plant and machinery and the delivery of good services cannot be achieved with the same level of tariffs.

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