The Electricity Company of Ghana (ECG) and the Ghana Water Company Limited (GWCL) have asked the Public Utilities and Regulatory Commission (PURC) to increase electricity and water tariff to 148% and 334% respectively.
According to the GWCL, the tariffs approved have not been satisfactory.
Due to this, they have not been able to raise enough fund for capital investment projects. The company complained.
“Among the urban poor, water can be a critical resource in short supply. GWCL has therefore set up a Low-Income Customer Support Department (LICSD) to deliver improved services to targeted low income urban poor areas”, GWCL.
They continued that, the Government is set on supplying water to urban regions nation-wide with an estimated amount of $2 billion by 2025.
“The Government of Ghana is committed to expanding access to safe water supply services in urban areas with particular focus on improving water production and expansion of distribution systems and ensuring sustainable financing of the sector. It is estimated that about $2billion will have to be invested in water production to help increase current urban coverage to 100% country-wide by 2025”, GWCL.
READ MORE: Increase water tariff by 334%; we want to be world class utility company – GWCL tells PURC | 3NEWS
On the other hand, the ECG have also made their concern on the increment of electricity tariff.
They explained that, their obligation impacts the entire energy sector hence, there must be financial sustainability in their sector.
“The financial sustainability of the Electricity Company of Ghana is important as it impacts on the entire energy sector. With the huge investment needs facing the distribution industry over the next five years, it is expected that the proposed tariff increases would inevitably be approved to sustain efficient and reliable electricity service”, ECG.
The ECG continued that, the tariff will have to increase in the next five years.
READ MORE: Electricity tariff: ECG wants 148% upward adjustment | 3NEWS
“The result of ECG’s tariff proposal for the next five years shows an approximately 148% increase on the current DSC1 in 2022 and an average increase of 7.6% year on year from 2023 to 2026”
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“Over the next five years, the DSC will need to increase consistently (average of 7.6%) to cover distribution cost”, ECG