Participants at a public forum to discuss proposed increases in water tariffs on Tuesday tasked the Ghana Water Company Limited (GWCL) to ensure efficiency in its operations rather than burden the consumers with huge tariffs increases.
They said that the tariff proposals are without merit, considering the poor service delivery.
Participants cited leakage, illegal connections, dry taps and the loss of over 50 per cent of water as some of the inefficiencies. They said when these are removed the company would operate at an optimum level and save the public such huge tariff increases.
GWCL has proposed over 300 per cent increase in water tariffs, citing huge operational costs and the rapid depreciation of the cedi as reasons.
The proposed tariff will raise the price of a bucket of water from 24 cedis to about 100 cedis.
The public hearings organised by the Public Utilities Regulatory Commission (PURC) are a mandatory prerequisite and provide the Commission with the opportunity to receive inputs from various stakeholders before it approves tariffs.
Mr Joseph Atopley, TUC Deputy General Secretary, said while conceding that the GWCL needs to charge economic rates to enable it to provide good and efficient services, consumers are not to blame for the harsh macro-economic instability that is the main cause of the problem.
"It will, therefore, be inappropriate to pass on the full effects of government's fiscal and monetary policies to consumers, more so, when the commodity in question is so essential," he said.
Mr. Atopley said giving the low level of incomes and a large number of the population who do not have access to potable water, the increases in water tariffs from 500 cedis to 5,500 cedis for 0-10,000 litres and 1,400 cedis to 7,750 for 11,000-40,000 litres are unreasonable.
He said the proposed increases are based on the desire of the company to achieve eight per cent rate of returns, based on replacement costs of its re-valued assets.
"We should be realistic in determining the rate of investment especially when we are dealing with a monopoly which provides an essential commodity like water."
Mr. Atopley said under such circumstances and the nature of the commodity a zero rate of return should be the ideal to ensure that every Ghanaian has access to potable water.
He recommended to PURC to approve tariffs that will enable the GWCL to operate at a positive rate of return, saying that the time is not ripe for eight per cent rate of return.
"The eight per cent rate of return can be granted when the social and economic conditions return to normal," Mr Atopley added.
Similar presentations from the Ghana Consumer Association reiterated the need for utility companies to ensure efficiency in their operations, adding that the current rate will be beyond the reach of many consumers and perpetuate poverty, especially in the rural communities.
The Acting Managing Director of GWC, Mr Jonathan Nunoo told the forum that the increases, though short of an economic tariff regime, are necessary to enable the company to improve on its services to meet customers' expectations.
Nana (Dr) S.K.B. Asante, Chairman of PURC, said PURC works to establish a tariff regime that will encourage investment flows.
However, it will also protect the interest of customers so as to ensure that they pay fair prices for services provided without funding waste on the part of GWCL and its future private partners.
