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Ghana’s Utilities Blame Illegal Mining for Sharp Tariff Hike Proposal

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Ghana’s two main utility providers have cited the damaging effects of illegal mining, known locally as galamsey, as a key reason behind a proposed increase of more than 200% in water and electricity tariffs.

Ghana Water Limited (GWL) and the Electricity Company of Ghana (ECG) say the environmental destruction caused by illegal mining is driving up operational costs and threatening the reliability of essential services.

At a public hearing in the Ashanti Region on the proposed 2025–2030 Multi-Year Tariff Order, ECG officials said sections of the country’s power distribution network, particularly those running through forest reserves, have been severely damaged by illegal mining activities.

“They are digging and moving towards the roads and trenches, which is very dangerous,” said William Boateng, ECG’s Director of Communications. “Anytime there is rainfall, electricity poles come down because the base has been weakened. That affects the stability of power supply.”

He said the destruction often leads to chain collapses along transmission lines, requiring costly repairs and causing losses in “unserved energy” — power that the company has already purchased but is unable to deliver.

GWL is also struggling with rising costs. The company says pollution of rivers and streams by illegal miners has made water treatment far more expensive, forcing it to use more chemicals and energy to ensure water is safe for consumption.

Both ECG and GWL say the tariff adjustment is necessary to keep services running and prevent further deterioration of infrastructure.

Illegal mining continues to pose a major challenge in Ghana, especially in gold-rich areas where enforcement of environmental regulations remains difficult. While the government has launched several crackdowns, the problem persists, with lasting effects on water bodies, farmlands, and national infrastructure.

The proposed tariff hikes are expected to draw criticism from consumers and civil society groups concerned about the rising cost of living. However, the utility companies insist that without significant intervention and investment, the country risks deeper disruptions to water and power supply.

Source:TheDotNews

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