GWCL flags galamsey, costs in 281% tariff demand

By Praisebell Rosemond Larbi

Ghana Water Limited (GWL) has proposed a steep 281 percent tariff increase, seeking regulatory approval from the Public Utilities Regulatory Commission (PURC) to raise water charges from GHS5.28 per cubic metre to GHS20.09 per cubic metre during the 2025 to 2029 regulatory period.

The utility company argues that the sharp hike is essential to clear its debt overhang and address mounting operational costs.

According to GWL, the persistent pollution of raw water sources, high foreign exchange costs for importing chemicals and equipment, and inflationary pressures have eroded its ability to sustain operations.

“We cannot continue to deliver reliable services under the current tariff levels,” said Michael Klutse, GWL’s Manager in Charge of Monitoring, at a recent public hearing on the proposal.

GWL maintains that without a significant adjustment, it will struggle to maintain water supply systems, expand infrastructure to meet rising demand and improve service delivery.

The company has in recent years faced growing financial stress due to illegal mining (galamsey) activities polluting rivers, increasing the cost of water treatment.

At the same time, imported treatment chemicals and spare parts have become more expensive, compounded by currency depreciation.

The PURC is currently holding public consultations to weigh consumer concerns against the sustainability needs of utilities.

Civil society organisations and consumer advocacy groups have already expressed alarm that such an increase, if approved, could place a heavy burden on households and businesses.

Meanwhile, the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCo) are also pressing for substantial tariff adjustments.

ECG is seeking a 224 percent increase in its distribution charge, while NEDCo is demanding a 171 per cent hike to cover what it describes as unsustainable operational costs.

Both power utilities have also proposed a dedicated tariff to finance the provision and maintenance of street lighting across the country, citing escalating costs and the absence of a reliable funding mechanism for this public service.

NEDCo has further called for the removal of the lifeline tariff bracket, which cushions low-income households.

The company argues that the current arrangement is no longer financially viable, given its high fixed and variable costs.

The PURC is expected to deliberate on all proposals before announcing new tariffs, which would take effect in 2025.