Executive Director of the Institute for Energy Policies and Research (INSTEPR), Kwadwo Nsafoah Poku, has argued that Ghanaians are already subsidising the operations of the Ghana Water Company Limited (GWCL).
Speaking on GWCL’s request for a 280% upward tariff adjustment, Mr. Poku explained that the cost of producing water is far higher than the price consumers currently pay per cubic metre. “This means Ghanaians are actually subsidising water,” he noted. He added that while GWCL’s case is rooted in high production costs driven by pollution and illegal mining, the Electricity Company of Ghana’s (ECG) request for a 225% hike stems largely from challenges in revenue collection.
Mr. Poku cautioned that although the utilities may have legitimate reasons for their proposals, granting the increases without considering affordability could impose unbearable hardship on consumers. “If you look at it strictly from a business perspective, you might approve line by line. But the real issue is the consumer, who cannot afford such increases. In Ghana today, one plus one is not equal to two. The figures may be justified, but affordability must always guide the final decision,” he stressed.
