GWCL Limits Water Supply with New 15.92% Tariff

Ghanaians should brace themselves for continued challenges with water supply, as the Ghana Water Company Limited (GWCL) maintains that the current tariff regime is insufficient to guarantee 24/7 water availability.

Speaking on PM Express, GWCL’s Public Relations Officer, Stanley Martey, stated that the recently approved 15.92% tariff increase by the Public Utilities Regulatory Commission (PURC) falls significantly short of the investment needed for consistent water delivery.

Mr. Martey acknowledged the PURC’s attempt to balance affordability with operational needs, but pointed out that even the regulator recognizes the inadequacy of the current tariff. “I think Dr Shaffic Suleman has explained everything and explained very well, and he himself has admitted that the tariff given to us this time around is inadequate,” he said.

He further explained that the PURC routinely reduces the GWCL’s proposed tariff adjustments, hindering the company’s ability to expand infrastructure and maintain existing systems. “And he also admits that he knows that it will be very difficult for us to operate, but then, under the circumstances, this is what they can give.”

Despite the financial constraints, the GWCL assures the public it will continue to provide water “as best as it can.” However, Mr. Martey emphasized the difficulties in securing funds for crucial investments. “Yes, it is true. It is woefully inadequate, but we will have to work and ensure that we serve our consumers efficiently,” he stated. “It’s very difficult to do investments, even to manage operations. So if every time we have to continue like this, I don’t know what the future holds, but like we always say, we’ll do our very best to ensure that the system works.”

The conversation, led by Evans Mensah, also touched on the escalating costs associated with galamsey-induced pollution of water sources. Mr. Martey confirmed a persistent gap between water demand and supply. “Okay, so for now we have admitted every time that there’s a gap between demand and supply,” he said. “To enable us to bridge that gap, we need to make a lot of investments, including building new infrastructure like treatment plants, extending pipelines and all that. These are capital‑intensive.”

He was unequivocal in stating that the 15.9% increase is insufficient to clear the company’s debts or attract the necessary financing for infrastructure upgrades. “Is this 15.9% adequate to enable us to save enough money or to clear our books, to enable us even to go for a loan facility, to expand our facility? That is impossible.”

While the GWCL will strive to maintain water flow, Mr. Martey urged Ghanaians to be realistic about expectations. “So then we will try to keep taps on, but then it can’t be 24/7,” he said. “Let’s admit that we can only keep the taps on 24/7 when we have built new treatment plants, when we have extended pipelines and all that. This tariff cannot do that.”

For the immediate future, the company will implement strict demand-management measures to ration the available water supply until a sustainable funding solution is found.

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