Keta: Some residents in the Keta Municipality of the Volta Region have expressed concern about the proposed hikes in electricity and water tariffs by the Electricity Company of Ghana (ECG) and Ghana Water Company Limited (GWCL).
According to Ghana News Agency, the GWCL is proposing a 280 per cent increase in water tariffs, while the ECG is requesting a 225 per cent hike in electricity charges. These proposals have sparked debate among consumers who are worried about the affordability of these essential amenities.
The GWCL has cited severe pollution of water bodies due to illegal mining activities, known locally as galamsey, as a major factor that would escalate treatment costs. This increase would require higher consumption of chemicals like alum and lime to address increased turbidity. The GWCL also argued that the current tariffs were unsustainable due to various operational costs involved.
Mr. Maxwell Dotsey, a concerned resident of Keta, expressed worry about the affordability of these services for many households and businesses in the community, which would face economic pressures and challenges. He noted that the Institute of Climate and Environmental Governance has warned about the potential negative effects on economic growth, particularly for small-scale businesses.
Mr. Dotsey explained that the GWCL sought to raise tariffs from GH? 5.28 to GH? 20.09 per cubic meter for 2025-2029, citing needs for funds to replace worn-out equipment, as well as address siltation or sludge issues that cause operational damages. He urged regulators to consider public consultations and economic factors, and to seek ideas and decisions that could impact utility revenue, service quality, and consumer costs both locally and nationwide.
He also called on the Public Utilities Regulatory Commission (PURC) to assess proposals from GWCL and ECG alongside others from NEDCo, Ghana Gas, and GRIDCo, to balance utility financial needs with consumer affordability. Additionally, Mr. Dotsey charged the government to address illegal mining activities to alleviate their impact on water sources, which are central to GWCL's tariff hike arguments.
Madam Charity Asase, a pure water vendor, highlighted the importance of water and electricity for human life. She noted that many were weighing the potential impacts of the tariff increments while awaiting the PURC's decision, hoping for a balance between utility viability and affordability. She also mentioned that economic difficulties and the high depreciation rate of the cedi could further challenge residents' ability to afford water and electricity if the tariff adjustments are implemented.
The ECG has also proposed a 225 per cent increase targeting its Distribution Service Charge, aiming for a hike from GH? 0.190384/kWh to GH? 0.618028/kWh. The company argued that the current structure is unsustainable, comprising only 11 per cent of the electricity value chain cost compared to global benchmarks of 30 to 33 per cent.
