Ghana Water Company proposes 343% increment in water tariff for residential customers
The Ghana Water Company Limited (GWCL) in its tariff review proposal to the Public Utilities Regulatory Commission (PURC) is proposing a 343% increment in tariff for households or residences with five or more people.
For households or residences with less than five people, GWCL is requesting for a 249% increment in water tariff.
The proposed water tariff increment represents a jump from the existing tariff of GHp 329 to GHp 1,159 for households with less than 5 people and from GHp 560 to GHp 2,483 for households with five or more people.
For its non-residential customers, the GWCL is also proposing a 278% increment in water tariff from the existing GHp 923 to the newly proposed water tariff of GHp 3,492.
Based on the proposed tariffs, the GWCL is expected to rake in GHS 2.5bn from households with five or more people, GHS 63m from households with less than five people and GHS 53m from non-residential customers respectively.
According to GWCL, the proposed tariffs is to help it at least recover costs to make its operations sustainable.
The company argues that over the years, approved tariffs have not been “full cost reflective” which has led to the inability of the company to raise enough revenue to finance the much needed capital investment projects, hence the consequent unsatisfactory level of service to Ghanaians.
According to GWCL, some of the major issues that have necessitated the tariff review include:
•Re-valuation of assets
• Exchange rate fluctuations/ Depreciation of cedi
•Debt overhang
•Inadequacy of tariff to carry out urgent repairs of assets and minor extensions
Peruse below details of the tariff review document of GWCL
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