Thirsty Ghana: New Water Tariff Sparks Controversy Amidst Scarcity Warnings

Published 5 days ago3 minute read
Pelumi Ilesanmi
Pelumi Ilesanmi
Thirsty Ghana: New Water Tariff Sparks Controversy Amidst Scarcity Warnings

The Ghana Water Company Limited (GWCL) has stated that while it will continue efforts to maintain water flow across the country, consumers should not anticipate round-the-clock supply under the current tariff regime. Stanley Martey, GWCL’s PRO, explained that the new 15.92% tariff approved by the Public Utilities Regulatory Commission (PURC) is significantly insufficient to support the necessary investments for guaranteeing uninterrupted water services.

Responding to PURC’s assertion that the increment aimed to balance affordability and operational needs, Martey highlighted that the PURC itself acknowledges the inadequacy of the figure. He quoted Dr. Shaffic Suleman, stating, “he himself has admitted that the tariff given to us this time around is inadequate,” and that it would be challenging for GWCL to operate effectively. Martey further emphasized that years of tariff cuts have made both day-to-day operations and crucial infrastructure investments extremely difficult.

Martey pointed out that PURC routinely reduces the company's requested adjustments, leaving GWCL without the funds needed for vital projects such as expanding treatment plants, replacing aging pipelines, or maintaining existing systems. He directly addressed the issue of rising costs, partly due to galamsey pollution, stating that the new rate cannot bridge the existing “gap between demand and supply,” which requires substantial, capital-intensive investments like building new infrastructure and extending pipelines. He reiterated that the 15.9% increase is nowhere near enough to even clear the company’s books or secure financing for major projects.

While GWCL will endeavor to keep taps running, Martey stressed that Ghanaians must be realistic about expectations under the current funding structure. He clarified that 24/7 water supply is only achievable when new treatment plants are built and pipelines extended, which the current tariff cannot facilitate. Consequently, the company will have to rely on strict demand-management measures to ration the limited water available until the funding shortfall is addressed.

From the PURC’s perspective, Acting Executive Secretary Dr. Shaffic Suleman explained that the latest water tariff adjustment of 15% (or 15.9% as mentioned by GWCL) only covers the most basic survival needs of GWCL. He described the Commission’s decision as a “balancing act,” made under tough choices to ensure GWCL could continue operating while simultaneously protecting consumers from unbearable price increases. Suleman indicated that the focus was strictly on critical inputs, allowing GWCL just enough room to secure the most urgent items to sustain current operations and potentially invest in new extensions, build laboratories for water quality testing, and purchase essential chemicals for water treatment.

Dr. Suleman confirmed that PURC did not approve all investment proposals from the utilities, including GWCL and the Electricity Company of Ghana (ECG). He insisted that the Commission only accepted what would lead to immediate service improvement, such as specific laboratory requests, some pipe extensions, and chemicals. He explained that PURC demanded clarity from utilities about the anticipated outcomes and benefits of every investment before approval. Due to prevailing economic conditions and the imperative to protect consumers, many investment proposals, particularly long-term projects, were rejected entirely for both GWCL and ECG. Only ongoing medium- to short-term critical investments were considered. Suleman acknowledged that both utilities would still face difficulties with the approved tariffs, but maintained that the Commission had no alternative given the circumstances.

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