The management of the Ghana Water Company (GWCL) has proposed a 334% increase of water tariff to the Public Utilities Regulatory Commission (PURC), effective this year.
The Electricity Company of Ghana is also to Increase electricity Tariffs By 148%.
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Reasons For Ghana Water Company New Water Tariff
GWCL attributes the high increase to the fact that over the years, the approved tariffs have not been full cost reflective.
This has led to the inability of GWCL to raise enough revenue to finance the capital investment projects, which has led to an unsatisfactory level of service. These were made known with the following statements:
- “Like any utility, GWCL is expected of us to Provide services that are safe, desirable, and affordable to consumers; and Ensure an institutional and commercial system capable of recovering costs.”
- “GWCL must at least recover its costs if we are to sustain our operations. Over the years, however, the approved tariffs have not been full cost reflective. This has led to the inability of GWCL to raise enough revenue to finance the much needed capital investment projects,
with a consequent unsatisfactory level of service.
- “It is estimated that about $2billion will have to be invested in water production to help increase current urban coverage to 100% country-wide by 2025.
- “GWCL therefore has embarked on an image redeeming mission, for transformation into a ‘world class utility company’. We therefore call on our Regulator, the PURC, to provide every necessary support to enable us turn things around,”
About Ghana Water Company New Water Tariff
Below are some major issues which have prevailed since the last tariff adjustment, and which have necessitated this review. Inadequacy of tariff to carry out urgent repairs of assets and minor extensions Unlike the previous years where the Automatic Tariff Adjustment Formula (ATAF) has been applied every quarter, PURC has not applied it for some time now.
- “In real terms the average tariff per cubic meter in 2019 was USD 1.27, but has reduced to USD 1.13 as a result of the cedi depreciation over the period as shown in the figure below.
- “This has affected our ability to carry out repairs and replacement of aged and obsolete equipment and pipelines, and other critical assets as would be expected and has given rise to high levels of NRW. As part of this proposal GWCL has included measures to reduce NRW for the consideration of PURC.
Ghana Water Company New Water Tariff
- The Ghana Water Company New Water Bill Tariff List PDF is to be published here soon
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