GWCL proposes 280% water tariff hike, blames galamsey, pollution

The Ghana Water Company Limited (GWCL) has proposed a 280 percent water tariff increase.

GWCL said the hike is necessary to keep operations running in the face of mounting costs.

GWCL’s 280 percent proposal was presented during the Public Utilities Regulatory Commission’s (PURC) 2025–2030 tariff review stakeholder engagement. According to the utility, galamsey activities and worsening pollution of rivers and streams are forcing higher chemical use and damaging treatment equipment.

“Illegal mining and pollution are crippling our ability to treat and deliver clean water at current tariff levels,” a GWCL official told the forum. “The reality is that we are spending more on chemicals like alum and lime than ever before, and our machines are breaking down faster because of sludge and silt.”

The 280 percent tariff hike request is the highest among all utilities, surpassing the Electricity Company of Ghana’s (ECG) proposal for a 225 percent increase in its Distribution Service Charge. GWCL argues that without an upward review, it cannot sustain operations, ensure quality water, or replace worn-out electromechanical equipment.

Michael Klutse, Chief Manager of Corporate Planning at ECG, also weighed in at the session, noting that chemical effluents and sand winning activities in areas such as Dalun and Nawuni continue to worsen the situation for GWCL. He said these environmental pressures are compounding costs for utilities that rely heavily on raw water from polluted rivers.

To highlight the gap between market and utility prices, GWCL compared its tariffs with private sector pricing. “A thousand litres of sachet water costs about GHS 1,000, while bottled water of the same quantity is around GHS 6,000. Even water sold in containers is GHS 440. Yet GWCL charges just GHS 5.28 for 1,000 litres. Clearly, the current tariff is not realistic,” the company stated.

GWCL insists that the new tariffs would help cover costs of treatment chemicals, replace failing equipment, and prevent water shortages. “Without these adjustments, water supply reliability will be threatened,” the company warned.

The PURC is reviewing all proposals before announcing approved tariffs for the 2025–2030 major tariff period. Alongside GWCL’s request, ECG is pushing for its own 225 percent adjustment, citing financial sustainability and the need to stabilize power delivery.

ECG’s proposal would raise the Distribution Service Charge from GHp19.0384/kWh to GHp61.8028/kWh. The company, which serves more than 73 percent of the population, says currency depreciation and a 45 percent revenue loss in real terms have made the increase unavoidable.