Look into efficiency of your operations – AGI tells Utility companies


The Association of Ghana Industries (AGI) has asked utility companies to look critically at the efficiency of their work, and ensure they tighten screws in recovering bills in the system.

AGI insists the solution to their problems is not inherent in continuous increment of tariffs.

Three utility companies, including the Volta River Authority(VRA), Electricity Company of Ghana(ECG) and GRIDco  want a major tariff review, proposing more than a 100 percent increment in tariffs for 2015.

Speaking at  at the launch of the Afro Barometer report, the President of the AGI, James Asare Adjei impressed on government to stop the major tariff review, adding that industries are already over-burdened.

“Going back to the last tariff review upwards, have we been able to meet all the benchmark for which there was the need for tariff increases if we haven’t been able to meet all the benchmarks that were set why are we asking of tariff increases again?.

“The issue is not only incessant increase of tariff but there is the need for us to look critically at the efficiency of their operations. There is also the need for us to look at whether utility companies for example ECG, are able to recover bills effectively. If you are recovering 60-65 percent of bills you put out there and you increase it to 90-95 percent do you know how much you can recoup?.

“Even if you come to power users and continuously increase tariffs and you are still not able to efficiently recover all bills and tariffs then you are back to square one. So AGI thinks the solution is not with the continuous increment of tariffs that is why we have stated clearly that industry is not ready for tariff increases.”

By: Kasapafmonline.com/Ghana