A/R GWCL justifies water tariff increment, cites galamsey and aging infrastructure

The Ghana Water Company Limited (GWCL) in the Ashanti Region is explaining its recent water tariff increase. The company cites high treatment costs due to illegal mining activities.

The Public Utilities Regulatory Commission announced a 4.02% increase in water tariffs. This change will take effect on May 1, 2025.

Hanson Mensah-Akuetteh, the Regional Manager of GWCL, discussed the reasons for this adjustment. He mentioned high treatment costs and aging infrastructure as key factors.

Mr. Akuetteh stated that providing quality water requires compliance with standards. Meeting these standards incurs costs, especially since chemicals must be imported.

He noted that most revenue covers operational costs and minimal maintenance. The capital costs are challenging to manage because of government subsidies. As a result, GWCL cannot charge realistic tariffs without significant increases.

Mr. Akuetteh emphasized that the new tariff is moderate due to government support for consumers.

However, the Ashanti region faces a potential water crisis. GWCL urges the government to combat illegal mining along the Offin River.

This river is crucial as it supplies water to the Barekese treatment plant. Illegal mining has increased turbidity levels beyond WHO limits.

“If we don’t protect the Offin River, Barekese will shut down,” he warned. “If that happens, all of Ashanti will be affected.”

Mr. Akuetteh also revealed that Barekese's treatment plant has dropped from "excellent" to "good" status for potable water quality.