Consumers partly bear cost of Ghana Water’s water losses through tariffs – PURC

Consumers in Ghana bear a portion of the cost associated with water losses experienced by Ghana Water Limited, according to Dr Shafic Suleman, the Executive Secretary of the Public Utilities Regulatory Commission (PURC). Dr Suleman explained that PURC's tariff framework permits a non-revenue water rate of up to 45 percent, indicating the portion of produced water that remains unbilled.

However, Ghana Water's current non-revenue water rate was recorded at 47.6 percent as of June 2026, surpassing the regulatory limit. The high figure of non-revenue water has raised significant concerns for the PURC, as it impacts the utility's efficiency and financial performance. Dr Suleman emphasized the PURC's focus on addressing the non-revenue water issues with Ghana Water during a discussion on "Is Ghana's water quality and access under threat?"

The 45 percent benchmark is included in the tariff structure, yet Ghana Water faces penalties when it exceeds the threshold as it cannot fully recover the revenue associated with the excess losses from consumers. The PURC's incentive-based regulatory framework aims to reward Ghana Water for reducing its losses, with potential additional revenue retention if the company achieves a non-revenue water rate below 40 percent.

The commission is monitoring Ghana Water's investments in transmission pipelines, distribution networks, and improved metering systems to ensure a progressive reduction in water losses. Non-revenue water encompasses treated water that does not contribute to the utility's revenue due to leakages, illegal connections, theft, faulty meters, and billing challenges.