Panelists at a round table discussion on the pricing of electricity have called for the setting up of an Independent Utility Commission to be charged with the responsibility to regulate utility service charges.
It was the view of the panelists that such a commission would have to devise a transparent formular and strategy for reviewing tariff systems in the country .
The discussion was organised by the Institute of Economic Affairs (IEA) as its contribution to the debate on the proposed 300 per cent price hike in electricity tariffs. Prominent among the panelists led by Mr. E.A. K. Kalitsi , chief Executive of the Volta River Authority were Dr. John Mahama, flagbearer of the PNC in the last general elections, Dr. Nana S.K.B. Asante, Paramout Chief of Asokre , Mr. Kwame Pianim, an economic consultant, Dr. Charles Wereko- Brobbey, Interim Chairman of the United Ghana Movement , Dr. Charles Mensah, Resident Director of VALCO and also Executive Director of the IEA and Dr. Jones Ofori Atta , an economist.
The panelists were of the view that even though tariff increases are necessary, there are presently no paremetres to justify an increase and contended that such a commission would work out tariffs in a way that will make people understand why and how increases are arrived at .
Mr. Kalitsi , in his presentation said domestic demand has been growing rapidly , averaging 10 per cent in the last five years which, he said, the existing hydro-system could no longer meet .
He explained that as a short -term measure , the VRA has since 1995 been importing power from Cote d’Ivoire to meet the demand .
He said the present tariffs were set in 1995, hence the need to adjust the tariffs to reflect current cost of power supply .
Mr.Kaltsi explained that the VRA, in the past was able to export hydro – energy at attractive margins to subsidise domestic rates .
‘This subsidy has now disappeared because the growing domestic load has compelled the authority not only to curtail the supply to those countries but to import from them to meet our local demands,’ he stated .
Mr.K.B. Asante, a retired diplomat who chaired the function , suggested that in increasing the tariffs the VRA must take into account the need for industries to survive since the attainment of the ideals of vision 2020 depend on industries .
He was hopeful that the discussions on the tariffs hikes , would go a long way to assist the VRA to arrive at an acceptable price.
