Ghana Water Limited (GWL) and the Electricity Company of Ghana (ECG) attribute the proposed increase of more than 200 percent in utility tariffs for the 2025–2030 Multi-Year Tariff Order to the significant operational challenges caused by illegal mining, commonly referred to locally as galamsey.
GWL reported that widespread pollution of water bodies resulting from illegal mining has substantially increased water treatment costs, placing considerable strain on the company’s resources.
Similarly, ECG indicated that segments of its power distribution network passing through forest reserves have sustained damage from illegal mining activities, resulting in frequent outages and increased operational expenses.
William Boateng, Director of Communications for ECG, presented these findings during public hearings on the proposed tariff adjustments in the Ashanti Region.
“They are excavating and encroaching upon the roads and trenches, which poses significant risks. Whenever there is even a slight rainfall, the poles collapse because their foundations have been compromised. This undermines the stability of the power supply,” he elaborated.
He also noted that this destruction frequently causes cascading failures along power lines, with multiple poles collapsing at once, which leads to significant repair costs.
“It requires us to spend more to repair the fallen poles and restore the service. Additionally, we are also incurring losses from unserved energy — power that we have already procured but are unable to deliver to our customers,” Mr. Boateng emphasized.
Both utilities asserted that it is essential to address the environmental harm caused by galamsey to ensure the continued provision of affordable and reliable water and electricity for the people of Ghana.
