Ghana Water Company justifies demand for 343% tariff adjustment; says everything is going up

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Amidst the controversies surrounding the proposed increment in water tariffs in the country, the Ghana Water Company Limited has emphasized that the 343% increment is justified in all respects.

According the GWCL, the current revenues generated from the prevailing tariffs are not enough to cover the expenditure incurred by company hence the need for the upward adjustment.

Speaking in an interview with Accra-based Citi TV, the Head of Corporate Affairs at the Ghana Water Company, Stanley Mantey explained that rising cost of their inputs in the treatment of water has made it imperative for increase in tariffs in order to sustain their operations.

He added that the company cannot carry out the necessary repairs and replacements of aged and obsolete equipment and pipelines considering the current cash flows.

Due to the general increase in prices of goods and services, Mr. Mantey insists GWCL’s operations will be affected, should it back down on its proposal.

“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 quizzed.

“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,” the Head of Corporate Affairs added.

While the GWCL wants a 343% tariff increment, the Electricity Company of Ghana (ECG) proposed a 148% increase in tariffs.

 

 

SourceABC News

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