We’ll try to keep taps running, but not 24/7 – GWCL on new 15.92% approved tariff

The Ghana Water Company Limited (GWCL) says it will keep working to maintain water flow across the country, but Ghanaians should not expect round-the-clock supply under the current tariff regime.

Speaking on PM Express, the company’s PRO, Stanley Martey, said the new 15.92% tariff approved by the PURC is far too little to sustain the level of investment required to guarantee uninterrupted water.

Responding to the regulator’s claim that the increment was meant to balance affordability and operational needs, he said the PURC itself acknowledges that the figure is inadequate.

“I think Dr Shaffic Suleman has explained everything and explained very well, and he himself has admitted that the tariff given to us this time around is inadequate,” he said.

“And he also admits that he knows that it will be very difficult for us to operate, but then, under the circumstances, this is what they can give.”

Mr Martey said GWCL will continue to serve consumers as best as it can, but the tariff cuts over the years have made both operations and investment extremely difficult.

“Yes, it is true. It is woefully inadequate, but we will have to work and ensure that we serve our consumers efficiently,” he said.

“It’s very difficult to do investments, even to manage operations. So if every time we have to continue like this, I don’t know what the future holds, but like we always say, we’ll do our very best to ensure that the system works.”

He noted that PURC routinely slashes the company’s required adjustments, leaving it without the funds needed to expand treatment plants, replace pipelines or maintain ageing systems.

The host, Evans Mensah, pointed to GWCL’s rising costs from galamsey pollution and asked if the company can keep taps flowing with the new rate.

Mr Martey was blunt.

“Okay, so for now we have admitted every time that there’s a gap between demand and supply,” he said.

“To enable us to bridge that gap, we need to make a lot of investments, including building new infrastructure like treatment plants, extending pipelines and all that. These are capital-intensive.”

He said the 15.9% tariff increase is nowhere near enough to even clear the company’s books, let alone secure financing for major infrastructure.

“Is this 15.9% adequate to enable us to save enough money or to clear our books, to enable us even to go for a loan facility, to expand our facility? That is impossible.”

Mr Martey stressed that while GWCL will try to keep taps running, Ghanaians must be realistic about expectations under the current funding structure.

“So then we will try to keep taps on, but then it can’t be 24/7,” he said. “Let’s admit that we can only keep the taps on 24/7 when we have built new treatment plants, when we have extended pipelines and all that. This tariff cannot do that.”

For now, he said, the company will rely on strict demand-management measures to ration the “little water in the system” until the funding gap is addressed.

Source: adomonline.com