It’s fraudulent for gov’t to order tariff increases – Manteaw

The Campaign Coordinator of the Integrated Social Development Center (ISODEC), Dr. Steve Manteaw says it is fraudulent for government to sanction tariff increases in the country.

“If that were true, it would have been a fraudulent action on the part of government because the reason ECG is unable to pay its debt is not because of low tariff but because government owes ECG so much; GH¢2.2 billion,” he added.Speaking on the Citi Breakfast Show on Monday, Dr. Manteaw lamented that innocent Ghanaians “are being made to suffer for government’s incompetence.”

Nigeria’s N-Gas has threatened to cut gas supply to Ghana by 70% on Friday over indebtedness.

But President John Mahama has reportedly directed the Public Utility Regulatory Commission (PURC) to increase utility tariffs in the country.

The move, according to the Managing Director of the West Africa Gas Pipeline Company (WAPco), Walter Perez is to help Ghana’s power production companies to defray the debt owed the company.

But Dr. Manteaw insists that “if government were to pay its debt to ECG” increasing electricity tariffs wouldn’t be necessary.

Backgroud

The Volta River Authority (VRA) owes WAPco 103 million dollars with the balance of 78 million dollars being owed to N-Gas and the other parties in the gas supply chain.

Since August 2014, VRA has received natural gas and pipeline related transportation services totaling 231 million dollars through WAPco but has paid only 50 million dollars of the amount.

VRA’s gas shipper N- Gas following pressures from the Nigeria National Petroleum Company a month ago formally notified WAPco to curtail gas supply to it until further notice.

– See more at: http://citifmonline.com/2015/10/15/its-fraudulent-for-govt-to-order-tariff-increases-manteaw/#sthash.u2RyXAzk.dpuf