The International Monetary Fund (IMF) has expressed strong support for the Public Utilities Regulatory Commission’s (PURC) recent decision to increase utility tariffs in Ghana. The upward adjustment includes a 14.75% rise in electricity tariffs and a 4.02% hike in water tariffs, affecting all categories of consumers.
Stephane Roudet, the IMF Mission Chief to Ghana, emphasized that these adjustments are critical for restoring financial stability to key State-Owned Enterprises (SOEs), particularly the Electricity Company of Ghana (ECG), which has been grappling with mounting financial challenges.
Speaking during a joint press briefing alongside the Bank of Ghana and Ghana’s Finance Minister, Mr. Roudet underscored the necessity of sustainable financing for SOEs to ensure uninterrupted services for the populace.
“The tariff hike is essential to stabilize the finances of SOEs, especially the ECG, enabling them to meet their obligations to power producers and maintain reliable electricity supply across the country,” Mr. Roudet explained. “While we acknowledge the potential burden this may place on households, especially vulnerable groups, it is a vital step towards ensuring energy security and economic sustainability.”
In addition to justifying the tariff increases, Mr. Roudet highlighted the IMF’s collaboration with the Ghanaian government to implement social protection measures. These interventions aim to mitigate the impact of the tariff hike on the most vulnerable segments of society.
“The IMF is committed to supporting the government in designing and implementing policies that shield low-income groups while improving conditions for workers across all sectors. This dual approach ensures inclusivity and sustainability,” he added.
The PURC also defended its decision amidst public concerns over erratic power supply and inconsistent water flow in some areas. The commission assured citizens that the tariff increases are aligned with efforts to improve service delivery and infrastructure.
Despite widespread complaints, the PURC maintained that consumers are receiving value for money and reiterated its commitment to addressing service inefficiencies.
As the debate over the tariff hike continues, the focus remains on balancing the financial health of SOEs with the needs of the Ghanaian people. With the IMF’s backing, the move is seen as a critical measure to foster long-term resilience in the country’s utility sector.
Story by: Mercy Addai Turkson #ahotoronline.com
