Ghana Water Company limited unhappy with tariff; water shortage looms

The Ghana Water Company Limited (GWCL) says the new water tariff announced by the Public Utility Regulatory Commission (PURC) is not enough to help with their work.

Ghana Water Company Limited

In an interview with Accra-based Joy FM, Director of communications at the Ghana Water Company Stanley Martey said it will be difficult for them to deliver on their mandate fully with the funds available.

He said that they requested for a higher tariff increase than the PURC announced recently.

"We have requested for a higher percentage, management is going to meet and then we see what to do but in the interim electricity have been given 11% rise and we have been given 8% now 44% of our expenditure is on electricity so you can imagine the impact on the Ghana Water Company so is a situation where it will be a bit difficult for us and you also know that we have some reduction not long ago."

The PURC has approved an 8.01 percent increment in water tariff, effective July 2019.

At a press conference, the Executive Secretary of the Commission, Maame Dufie Ofori, said the tariff increase has become necessary due to factors including the dollar to cedi rate, projected inflation rate and increasing electricity and water demands.

"In arriving at this decision the PURC took into consideration several issues key among them are the following; the ECG PSP process, projected inflation rate, Ghana-US dollar exchange rate, cost of operation of utility companies and projected electricity and water demand for the 2019/2020 tariff period, as mandated by law and in compliance with the commission's tariff decision making process, extensive stakeholder consultations were held to solicit views and gather inputs for the final determination of the tariffs."

This increment follows the increase in electricity tariffs by 11.7 percent, effective July 1, 2019.

The PURC approved the increase after considering proposals from the Volta River Authority (VRA), the Ghana Grid Company Limited (GRIDCo), the Electricity Company of Ghana (ECG), Power Distribution Services (PDS) Ghana Limited, the Northern Distribution Company (NEDCo) and Enclave Power.

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