Ghana Water Limited seeks 281% tariff hike to offset rising costs

The Ghana Water Limited (GWL) has requested regulatory approval for a 281 percent increase in its water tariff, proposing a jump from GH¢5.28 per cubic metre to GH¢20.09 per cubic metre.

If granted by the Public Utilities Regulatory Commission (PURC), the adjustment will apply during the 2025–2029 regulatory period.

GWL explained that the sharp hike is necessary to clear its debt overhang and cope with rising operational costs, particularly the pollution of raw water sources and foreign exchange pressures affecting the purchase of imported equipment and chemicals.

The company insists that without this adjustment, sustaining a water supply and funding infrastructure expansion will be difficult.

At a public hearing on the utility’s proposal, Michael Klutse, Manager in Charge of Monitoring at GWL, said the company cannot continue to deliver reliable services under the current tariff levels.

Meanwhile, the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCo) have proposed a dedicated tariff to finance the provision and maintenance of street lighting nationwide.

This comes as both utilities are already pushing for major tariff increases. ECG is seeking a 224 percent adjustment in its distribution charge, while NEDCo is demanding a 171 percent hike to cover what it describes as unsustainable operational costs.

In addition, NEDCo has called for the removal of the lifeline tariff bracket, which cushions low-income households. The company argues that the current arrangement is no longer viable due to its high fixed and variable costs.