Tema customers owe GWCL GH¢140 million - Deputy Managing Director

Customers in Tema alone owe the Ghana Water Company Limited (GWCL) a total of GH¢140 million out of the about GH¢800 million owed by customers across the country.

Out of the GH¢800 million, Accra and Tema alone share 60 per cent while the 40 per cent is owed by the remaining regions.

The GH¢800 million arrears outstanding ballooned from GH¢684 million in January 2022 after the Public Utilities Regulation Commission (PURC) negotiated a 22 per cent increment in water tariffs as against the 120 per cent proposed by the GWCL.

Deputy Managing Director of the Company, Peter Deveer, disclosed these on Monday when the Company embarked on a revenue mobilisation exercise to recover all arrears owed the company.

According to MrDeveer, 90 per cent of the total arrears were owed by private entities while government agencies were responsible for 10 per cent.

While acknowledging the government institutions for their efforts in paying the bills, he said the private entities blamed the default on their bill payment on unfavourable economic conditions.

But to MrDeveer, that was not enough justification to evade their bill obligations as the entire nation, including the GWCL bore the brunt of the harsh economic downturn.

He said the private business for instance, were at liberty to adjust prices of goods and services to meet their operations but that was not the case of the GWCL as its prices were determined by a regulatory body.

He stated that the operations of the GWCL had become very expensive owing to the pollution of water bodies by illegal mining, sand winning and farming either inside or close to river bodies which had increased the turbidity of the rivers where water is extracted for treatment.

MrDeveer said that the situation had become a strain on the operations of the company since it had to use foreign exchange to procure chemicals to treat polluted water, to meet the World Health Organisation’s standards.

He lamented that even in the face of the 22 per cent negotiated by the PURC instead of the 120 per cent proposal which the PURC deemed too ambitious, private consumers refused to pay their bills.

“If we are not careful, the arrears will choke the life out of GWCL and Ghana cannot live without water, hence the exercise to recover the monies,” he said.

At the Royal Nick Hotel in Community six, management made a part payment of GH¢10,000 out of a total of GH¢41,000 and made a commitment to pay the outstanding arrears of GH¢31,000 in two weeks’ time.

The Tema International Hotel also paid GH¢20,000 it owed the company when a team of the official task force visited the facility. Similarly, the SOS Hermann Gmeiner College also paid its bill of GH¢46,000.

Others who had not made any commitment to pay their bills were disconnected including some residents at Valco Flats in Community six.

Management of the GWCL entreated customers to cooperate with the teams as they undertake the all important exercise in an effort to collect and mobilise the much needed revenue to improve water supply services in the country.