Africa-Press – Ghana. Some residents in the Keta Municipality of the Volta Region have expressed concern about the proposed hikes in electricity and water tariffs respectively by the Electricity Company of Ghana (ECG) and Ghana Water Company Limited (GWCL).
While the GWCL is proposing for a 280 per cent increase in water tariffs, the ECG requests a 225 per cent hike in electricity charges.
The proposals have sparked debate among consumers who are worried about affordability of the two essential amenities.
The GWCL further cited severe pollution of water bodies due to illegal mining activities (galamsey) as a major factor that would escalate treatment costs, with higher consumption of chemicals like alum and lime needed to address increased turbidity.
The GWCL also argued that the current tariffs were unsustainable due to some operational costs involved.
Mr Maxwell Dotsey, a concerned residents of Keta in an interview with the Ghana News Agency, expressed worry about affordability for many households and businesses in the community, who would obviously face economic pressures and challenges.
“The Institute of Climate and Environmental Governance has warned about the potential negative effects on economic growth, especially for small-scale businesses,” he said.
He explained that other information gathered revealed that the GWCL sought to raise tariffs from GH₵ 5.28 to GH₵ 20.09 per cubic meter for 2025-2029 and needed funds for worn-out equipment replacement, as well as address siltation or sludge issues that caused operational damages.
He said the regulators should consider public consultations and economic factors and seek ideas and decisions which could impact utility revenue, service quality, and consumer costs in the locality and nationwide.
“I think the Public Utilities Regulatory Commission (PURC) must assess GWCL and ECG proposals alongside others from NEDCo (171%), Ghana Gas (91%), and GRIDCo (130% transmission tariff hike) and balance utility financial needs with consumer affordability,” he said
Mr Dotsey charged the government to address illegal mining activities to alleviate the impact on water sources which were central to GWCL’s tariff hike arguments and prevent pollution raise treatment costs which complicated the efforts to supply affordable clean water amid already strained finances.
Madam Charity Asase, a pure water vender told that water and electricity were importance for human life and many others were weighing potential impacts the tariff increments would have on the public, while others awaited PURC’s decision with hope for a balance between utility viability and affordability.
She said the economic difficulties and the high depreciation rate of the cedi could be another challenge that many residents would face in affording water and electricity when the tariff adjustment is implemented.
She said with the proposals under review many water and electricity users in Keta and across the country would wait for PURC’s ruling, which were critical for utilities’ financial health and consumers’ cost burdens.
Information gathered also revealed that the ECG had also proposed 225 per cent increase that targeted its Distribution Service Charge, which aimed was a hike from GH₵ 0.190384/kWh to GH₵ 0.618028/kWh and argued that the current structure was unsustainable, constituting only 11 per cent of the electricity value chain cost versus global benchmarks of 30 to 33 per cent.
Source: Ghana News Agency
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