Ghana Water Tariff to Increase by 281%? GWL Justifies Proposal
The Ghana Water Limited (GWL) has requested regulatory approval for a 281% increase in its Ghana water tariff. The proposal seeks a jump from GH¢5.28 per cubic meter to GH¢20.09 per cubic meter. If the Public Utilities Regulatory Commission (PURC) grants approval, the new tariff will apply during the 2025–2029 regulatory period. GWL explained the sharp hike is necessary. It must clear its debt overhang and cope with rising operational costs. Notably, the company struggles with the pollution of raw water sources and foreign exchange pressures. These pressures affect the purchase of imported equipment and chemicals. Without this adjustment, the company insists it cannot sustain water supply and fund infrastructure expansion.
At a public hearing, Michael Klutse, a Manager in Charge of Monitoring at GWL, defended the proposal. He stated that the company cannot continue to deliver reliable services under the current tariff levels. Other utilities also seek significant increases. The Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCo) have proposed a new dedicated tariff. It would finance the provision and maintenance of street lighting nationwide. In addition, ECG is seeking a 224% adjustment in its distribution charge. Meanwhile, NEDCo demands a 171% hike. The company says it needs this to cover unsustainable operational costs.
Furthermore, NEDCo has called for the removal of the lifeline tariff bracket. This bracket currently cushions low-income households. The company argues its high fixed and variable costs make the current arrangement unviable. The series of proposals has sparked public debate. It has also generated criticism from citizens. A proud fan reported on social media: “As we can see, since Mahama came to government, he has been increasing taxes at the blind side of Ghanaians. He knows Ghanaians have short memories. Now, when you buy light and water and it finishes early, don’t come and say, ‘A good government has arrived!'” The rising costs of electricity and water have raised public concern. People wonder how these hikes will impact household budgets and businesses across Ghana. This latest Ghana water tariff proposal will likely face significant scrutiny from the PURC and the public alike.
