In justifying its recent demand for a 343% tariff increment, the Ghana Water Company Limited (GWCL) says income generated from the current water tariffs is not adequate enough to support its expenditure.
The Head of Corporate Affairs at GWCL, Stanley Mantey indicated on Eyewitness News that the GWCL will thus have to adjust its tariffs to generate enough revenue to sustain its operations.
“In 2020, our expenditure is amounting to 4 billion cedis. Meanwhile our income, per the tariffs we currently have is around 2 billion cedis so how are we going to make up for the difference,” Mr. Mantey asked.
While the GWCL wants a 343% tariff increment, the Electricity Company of Ghana (ECG) proposed a 148% increase in tariffs.
The GWCL argued that while the average tariff per cubic metre in 2019 was 1.27 USD, same was reduced to USD 1.13 as a result of the depreciation of the cedi.
It said this has affected its ability to carry out repairs and replacements of aged and obsolete equipment and pipelines.
These proposals have been widely criticized by various groups and individuals.
However, Mr. Mantey insists GWCL’s operations will be affected, should it back down on its proposal.
“Everything is going up including the currency. This year alone, our chemical providers have increased the cost of their chemicals by 60 percent. Meanwhile it is the same tariff from 2017. These are the things we have to look at. The way things are going, if we do not get the right tariff adjustment it could affect our operations.”