ECG - Ghana Water Tariffs: Company proposed 148% and 334% increase in utility bill plus wetin fit happun next

Electricity Company of Ghana (ECG) dey request for 148% increase in utility prices for 2022, meanwhile made Ghana Water Company Limited (GWCL) also dey ask for 334% increase in water tariffs.

De proposed tariff increase dey generate debate among Ghanaians who dey reject de proposals.

Both ECG den GWCL say de proposed increment be important sake of dis go sustain for dia operations.

So what exactly be de reason for de proposed price increases.

ECG justification for 148% price increase

According to ECG, de proposed 2022 price increase be important sake of cost of investment projects which dem dey undertake.

Dem explain say de tariff increase go help sustain efficient den reliable electricity service to Ghanaians.

ECG believe say de financial sustainability of de company be important as de investments go help de power distribution industry over de next five years.

Ghana Water Company Limited 334% justification

GWCL dey propose 334% increase in water tariffs sake of according to them, de cost of water production increase sake of de depreciation of de cedi.

Dem also explain to de Public Utility Regulatory Commission (PURC) say dem dey pay $7.93 million dollars as loan payment monthly, dis be 47.15% of dia average monthly revenue.

GWCL say dem no get option than to recover de loan monies dem dey pay through de tariff increment.

What go happen next?

De proposal from both GWCL den ECG go go before de Public Utility Regulatory Commission (PURC) for review.

PURC go consider de arguments dis companies dey make den take decision on whether dis price increase go take effect or not for 2022.

After de review, PURC go announce de agreed percentages which go take effect.

Impact of proposed increase in consumers

Per de proposed tariff increment, consumer who dey pay Ghc50 monthly for electricity today go start pay Ghc124 per month.

Again, per de 334% proposed water tariff increment, consumer who dey pay Ghc50 for water today go pay Ghc217 monthly.

How Ghanaians dey react

Some Ghanaians dey reject de proposed tariff increases from de utility companies.

Most of dem take to social media to express dia disapproval over de proposed increases.

To some consumers, de utility companies want shift dema failure to collect debt to consumers instead of developing systems to collect debts owed dem.

Some dey argue say ECG den GWCL dey use reverse psychology on Ghanaians by proposing for high percentages so say even if PURC reduce de percentages dem go hit dia targets.