Bongo MP Edward Bawa wants the government to reduce taxes on utility rates.

Edward Bawa says that the elements of taxes placed on tariffs push up the prices consumers have to pay.

Responding to requests from utility providers for increased rates on The big problem on CitiTV/FMthe former head of communications at the Department of Energy argued that if taxes are removed, consumers will be relieved.

“The government should start looking at the burden it is placing on tariffs. If the government is able to reduce tariff taxes, bearing in mind that citizens are already burdened by the economy, there could be a conversation about reducing prices.

The Electricity Company of Ghana had proposed that its tariffs be increased by 148% for 2022 and with average adjustments of 7.6% between the periods of 2023 to 2026.

The large increase proposed, according to the ECG, is due to the gap between the actual cost recovery tariff and the tariffs approved by PURC as well as the cost of completed projects.

The Ghana Water Company is also proposing an increase in its tariffs so that it can at least recoup its operating cost.

Some observers have said that the amount consumers pay for electricity is woefully insufficient to sustain ECG operations.

These proposed increases come at a time of great controversy over the high cost of living and worsening inflation.

But service providers argue the increase is necessary to keep them afloat.