The devastating impact of illegal mining, locally known as galamsey, is driving up the cost of essential utilities in Ghana, with the Ghana Water Company (GWC) seeking a sharp tariff increase to cover soaring expenses in treating heavily polluted water.
According to GWC, the cost of chemicals required to purify water has more than tripled in recent years, eroding revenues and leaving tariff adjustments unavoidable. Data shows the company is projected to spend GH₵336 million on treatment chemicals in 2025, compared to less than half that amount in 2022—a rise of more than 200%.
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At a stakeholder forum on Tuesday, September 9, the Public Utilities Regulatory Commission (PURC) confirmed that GWC’s proposal is the highest among all utility companies, largely because of galamsey-related pollution.
“Because of galamsey, the Ghana Water Company has a lot of issues with the water that they have to process for us to use,” said PURC Tariff Committee Chair Nana Yaa Jantuah.
“In no time, Ghana will be water-poor. We may even have to import water, and that will create vulnerabilities for the poor, who cannot afford such costs.”
Eight state-owned utilities have submitted or are expected to submit tariff proposals for the 2025–2029 tariff review period, including the Electricity Company of Ghana (ECG), Volta River Authority (VRA), and the Ghana Grid Company (GRIDCo).
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GRIDCo is seeking a 130% hike in transmission tariffs, proposing rates between 13.04 pesewas and 13.44 pesewas per kilowatt-hour (excluding levies) for the 2026–2030 period, arguing that current tariffs are inadequate and unsustainable.
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ECG is requesting a 224.6% increase in its distribution charge, saying its cost-recovery rate remains far below sub-regional averages. Currently, distribution accounts for about 11% of tariffs in Ghana, compared to around 30% across West Africa.
JoyNews data analyst Isaac Kofi Agyei noted that while several utilities are expected to present proposals, only VRA and GRIDCo have so far submitted detailed cases. He confirmed that GWC’s request is the most aggressive, with soaring chemical costs as the main driver.
“The main focus here is the Ghana Water Company, which, according to the committee, has the highest tariff request because of illegal mining. They are budgeting close to GH₵334 million for chemicals alone this year,” he explained.
The PURC is expected to scrutinize the proposals in the coming months before making a final determination on tariff adjustments.
Story By: Afia Ohenewaa Akyerem