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.