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Business News of Tuesday, 25 June 2019


Water shortage may hit some parts of Ghana as GWCL is unsatisfied with new tariff

Ghana Water Company Limited has described the new water tariff announced by the Public Utility Regulatory Commission, PURC as unsatisfactory.

According to the Ghana Water Company, it will be difficult for them to deliver on their mandate as they need more funds to run their facilities across the country.

Speaking to Joy FM after the announcement of the new water tariff, Director of communications at the Ghana Water Company Stanley Martey said, "We have requested for a higher percentage, management is going to meet and then we see what to do but in the interim electricity have been given 11% rise and we have been given 8% now 44% of our expenditure is on electricity so you can imagine the impact on the Ghana Water Company so is a situation where it will be a bit difficult for us and you also know that we have some reduction not long ago."

PURC approves 8.01% increment for water tariff

The Public Utilities Regulatory Commission (PURC) has approved an 8.01 percent increment in water tariff, effective July 2019.

At a press conference, the Executive Secretary of the Commission, Maame Dufie Ofori, highlighted the factors that have necessitated an increment in these tariffs including the dollar to cedi rate, projected inflation rate and increasing electricity and water demands.

"In arriving at this decision the PURC took into consideration several issues key among them are the following; the ECG PSP process, projected inflation rate, Ghana-US dollar exchange rate, cost of operation of utility companies and projected electricity and water demand for the 2019/2020 tariff period, as mandated by law and in compliance with the commission's tariff decision making process, extensive stakeholder consultations were held to solicit views and gather inputs for the final determination of the tariffs."

This increment follows the increase in electricity tariffs by 11.7 percent, effective July 1, 2019.

The PURC approved the increase after considering proposals from the Volta River Authority (VRA), the Ghana Grid Company Limited (GRIDCo), the Electricity Company of Ghana (ECG), Power Distribution Services (PDS) Ghana Limited, the Northern Distribution Company (NEDCo) and Enclave Power.