Audio By Carbonatix
The Executive Director of the Institute for Energy Policies and Research, Kwadwo Nsafoah Poku, says Ghanaians are already subsidising the Ghana Water Company Limited (GWCL).
Speaking on Joy News’ PM Express on September 9, he revealed that the cost of producing water far outweighs the price consumers are paying.
“Ghana Water Company today, I looked through their presentation and they are producing water far expensive than what we are paying for per cubic. So that means Ghana, we are actually subsidising water,” he said.
Mr. Poku made the comment in reaction to GWCL’s request to the Public Utilities Regulatory Commission (PURC) for a 280% upward adjustment in tariffs.
The company attributed the demand to the devastating effects of illegal mining and pollution of water bodies.
According to him, GWCL’s situation differs from that of the Electricity Company of Ghana (ECG), which is also seeking a 225 per cent increase in its Distribution Service Charge.
“Because they have different problems, ECG distributes the electricity; they don’t collect the money. Ghana Water distributes the water, but the cost of producing the water they distribute is very expensive. So that’s the dichotomy between the two of them.”
He cautioned that approving the proposals solely from a business standpoint risks imposing unbearable costs on consumers.
“But the point I want to make is that if you treat it as a business, as we businessmen do, then you’ll be inclined to go line by line and approve it. But the problem you would have is that the person who bears the brunt of it is the consumer who can’t afford it.”
For Mr. Poku, the country’s utilities present a paradox.
“So that’s where I have always said that in Ghana now, one plus one is not equal to two, because all these things though justified…” he noted, warning that passing costs on without considering affordability could worsen the plight of consumers.
Latest Stories
-
Motorists and pedestrians decry worsening encroachment on roads and pavements in Avenor
3 hours -
Mexico beat South Africa in dramatic World Cup opener as three players sent off
4 hours -
Gov’t releases GH¢537m to cover tuition fees of 159,750 students under No Fees Stress Policy
4 hours -
Twice in a year, Chairman Wontumi’s lead lawyer has walked away
5 hours -
CSOs mount strong defence of OSP ahead of Supreme Court verdict
6 hours -
Telecel launches Ashanti Codes to equip youth with digital and AI skills
6 hours -
Cash for awards controversy: Minority demands parliamentary inquiry
6 hours -
Abronye DC granted permission to travel to UK for master’s programme
6 hours -
Government has stabilised economy, jobs will follow — Ricketts-Hagan
6 hours -
World Cup ticket allocations for Ghanaian diaspora not yet received -UN Mission
6 hours -
PURC, ECG and GRIDCo align plans to ensure stable power supply during 2026 FIFA World Cup
7 hours -
Ghana launches National Shea Commodity Platform to commercialise shea production
7 hours -
Bawumia holds talks with British High Commissioner in Accra
7 hours -
AFF study documents 115 edible forest species and indigenous knowledge in biodiversity hotspot
7 hours -
Fortune names Yellow Card among top global crypto innovators
7 hours