PURC orders 10% reduction of water tariffs

The Ghana Water Company Limited (GWCL) is set to reduce its tariff on prevailing rates for all customers by 10%.

The GWCL has been compelled to reduce the tariff following an order from the Public Utilities Regulatory Commission (PURC).

The order indicates that the GWCL has been non-compliant with tariff decision and regulatory directives concerning the Teshie Desalination plant.

Executive Secretary of the PURC, Mami Dufie Ofori, said the GWCL has countlessly refused to allow the desalination plant to operate.

This, she said, is contrary to the PURC’s tariff decision, adding that the reduction represents the component of costs.

“The reduction represents the component of costs related to the desalination plant approved as part of the July 2018 water tariff decision,” Mrs. Dufie Ofori said in a statement.

“The commission’s decision to maintain costs relating to the plan in the tariff was informed by GWCL’s own decision to operate the desalination plant.”

The desalination plant at Teshie has currently been shut down to enable renegotiation of the contract.

But the GWCL makes payments of GHc 8 million a month to the financiers of the project, although it generates only GHc 2 million by supplying treated water from the plant.

Per the PURC’s order, the GWCL is also expected to give significant refunds to customers.

According to the statement, the GWCL will refund “an amount totaling GHs14,097,146.oo only to all its customers. The amount represents five months’ tariff income unfairly over-recovered by GWCL between March 15, 2018, and September 15, 2018.”

“This refund results in a further 1.41% tariff reduction which shall be applied from 16th September 2018 to December 31, 2018,” it added.