Two prominent advocacy organizations have rejected Ghana Water Company Limited’s proposed 280% water tariff increase, arguing that systemic operational failures rather than pollution costs should drive regulatory decisions.
The Integrated Social Development Center (ISODEC) and Africa Water Justice Network issued a joint statement challenging the tariff proposal, which attributes the request to rising costs of treatment chemicals, frequent damage to equipment, and operational challenges caused by heavy pollution of water sources by galamsey.
GWCL’s tariff application seeks regulatory approval from the Public Utilities Regulatory Commission (PURC) amid Ghana’s ongoing battle against illegal mining operations that have severely contaminated major water sources. The company argues that treating polluted water has significantly increased operational costs, necessitating substantial tariff adjustments.
However, civil society critics contend that GWCL’s financial challenges stem from deeper structural problems that tariff increases cannot resolve. The organizations highlight alarming trends in non-revenue water losses, which have escalated from 39.1% in 2020 to 49.9% in 2024, far exceeding both Ghana’s 43% benchmark and the 23% standard for developing countries.
International best practices show high-performing utilities in developing nations maintain non-revenue water at 23%, while North American and European utilities achieve 13-15% rates. Ghana’s figures represent billions of liters of treated water lost annually through leakages, theft, poor metering, and inadequate data management systems.
The advocacy groups particularly criticized the Teshie Desalination Plant arrangement, describing it as financially burdensome. Under current contracts, GWCL pays monthly capacity charges of $1.4 million plus GHS 3 million in electricity bills, while purchasing water at GHS 6.50 per cubic meter but selling it at PURC-approved tariffs of just GHS 1.50.
Political interference in procurement processes represents another concern, with the organizations citing a GHS 1.3 million monthly internet services contract linked to the former National Signals Bureau Director-General as evidence of questionable resource allocation affecting company finances.
The groups rejected GWCL’s comparison of proposed tariffs with sachet and tanker water prices, arguing that consumers resort to alternative water sources precisely because the state utility has failed to provide reliable tap water access.
Instead of tariff increases, the organizations propose establishing a Water Solidarity Fund through a 2.5% levy on oil and mining revenues, similar to existing dedicated funds for education and healthcare. This approach would ensure extractive industries contribute directly to water infrastructure costs.
GWCL serves over 73% of Ghana’s population and faces mounting pressure to maintain service delivery while managing financial sustainability. The company has warned of potential treatment plant closures if regulators reject the proposed tariff adjustments.
The civil society response reflects broader concerns about utility affordability in Ghana, where similar debates surround electricity tariffs. The Electricity Company of Ghana has simultaneously proposed a 225% increase in distribution service charges, citing financial collapse risks.
PURC faces the complex challenge of balancing utility financial viability with consumer affordability while addressing the underlying causes of operational inefficiency. The regulator’s decision will significantly impact millions of Ghanaians already struggling with economic pressures.
The organizations urge PURC to reject the current tariff proposal and instead pursue comprehensive reforms addressing non-revenue water losses, contract renegotiations, procurement transparency, and enhanced democratic oversight of utility operations.
Ghana’s water crisis reflects broader governance challenges where environmental degradation, regulatory capture, and operational inefficiencies converge, requiring systemic solutions beyond simple tariff adjustments to ensure sustainable water access for all citizens.
