The utility tariff challenge

BY: Gertrude Ankah Nyavi
• Would the increase in tariff solve the challenges in the water and electricity sectors?

Utility companies in the country are requesting more than 100 percent increment in tariffs to keep their operations. They said this upward review for the cost of water and electricity would represent a realistic price for the services.

The Ghana Water Company Limited (GWCL) is seeking 124 percent increase in its tariff from GH¢1.78 for 120 gallons of water (5 barrels) to GH¢ 4 for 120 gallons of water while the increases being sought by ECG, VRA and GRIDCo are computed together, will increase electricity tariff from 44-50 pesewas per kWh to 102-99 pesewas per kWh.

For electricity, ECG is seeking 101 percent increase; VRA wants 108 percent increase while the Ghana Grid Company (GRIDCo) seeks 31.26 percent.

Meanwhile, the government owes both the Volta River Authority (VRA) and power distributor, the Electricity Company of Ghana (ECG) some $500 million -- being accrued cost of providing power to government Ministries, Departments and Agencies (MDAs).