ASEC warns PURC against electricity price hike

The Africa Sustainable Energy Centre (ASEC) opposes plans by the Public Utilities Regulatory Commission (PURC) to raise electricity tariffs.

ASEC argues that inefficiencies and illegalities in the sector must be fixed first. They believe consumer value should also be prioritized before any price changes.

The organization insists on a national debate about electricity distribution before considering tariff hikes. ASEC claims the Public Utility Act has been ignored for years regarding consumer interests.

While reflective tariffs are necessary, ASEC says the sector must address its inefficiencies first. They do not want consumers to bear additional financial burdens.

ASEC demands that electricity distribution companies prove a 95% collection rate before any tariff increase. The current collection rate of 62% is unacceptable for raising prices.

They argue it is unfair to burden responsible consumers who pay their bills. Until collection rates improve, discussions about tariff hikes are premature and unjust.

**Service Quality Concerns and Financial Management**

ASEC believes Ghanaians are not getting value for their electricity payments. Frequent power outages, voltage fluctuations, and poor customer service remain issues.

It is unfair to demand higher tariffs when service reliability is low. ASEC calls for infrastructure improvements before considering any tariff adjustments.

They also insist on full disclosure of revenue collection and operational expenses in the sector. If utility companies claim financial distress, they must provide transparent breakdowns of costs.

Without accountability, tariff increases only cover inefficiencies instead of improving services. Consumers deserve to know how their money is managed in this sector.

**Unethical Practices in Energy Consumption**

ASEC raises concerns about businesses using electricity without paying for it. These businesses then sell products to law-abiding consumers, creating an unfair cost burden.

This practice distorts cost distribution and discourages responsible energy use. ASEC urges government action to ensure all consumers pay their fair share.

They emphasize that system losses have drained resources and caused revenue shortfalls. Addressing these issues should take priority over increasing tariffs.

**Long-Term Solutions Over Tariff Hikes**

ASEC encourages Ghana’s electricity sector to seek sustainable solutions instead of relying on tariff increases.

They advocate for improving infrastructure, investing in renewable energy, modernizing grid systems, and reducing waste. Efficiency should come first rather than passing costs onto consumers.

**ASEC’s Final Warning to PURC**

ASEC states that any tariff adjustment must be justified by a performance-driven framework. They warn PURC about the importance of “social licensing,” which requires public consent for policies.

Without consumer trust, attempts to raise electricity tariffs will face strong opposition. Until real reforms occur, ASEC rejects proposed tariff increases as premature and unjustified.