The Chief Manager in charge of Public Relations at the Ghana Water Company Limited, Mr Michael Agyeman has allayed the fears of consumers over the recent 6.1 per cent tariff increase in water.

According to him, the increment is insignificant since Ghanaians would by charged only one pesewa per 200 gallons of water.

“It is just 0.8% increase from 1.38 Ghana Cedis to 1.46 Ghana Cedis. People should not panic at all,” he said.

The PURC last week announced a 6.1 per cent increase in water tariffs for the third quarter of the year. The new tariff took effect Tuesday, July 1.

According to Mr Agyeman postpaid customers would only see the new charge in the first week of August when they receive their bills.

He dispelled claims that the GWCL has failed to improve water supply even after numerous tariffs increment.

He explained that tariffs were not meant for expansion works, but for operational costs.

“The increment is meant to pay for electricity cost, to import chemicals, purchase pumps and to pay for other administration expenses," he added

He said GWCL uses 35% of its revenue to pay for electricity.

“We have to increase our prices if the electricity company increases its tariffs,” he added.

Mr. Agyeman said the hike in tariffs is also meant to enable GWCL exchange dollar to import chemicals used for production.

He said the GWCL rather depends on capital investment to expand supply.

“We fall on government to get loans for proper production of water. We need to invest to produce more water, and that is not what the tariff is meant for,” he said.

He said GWCL produces 90 million gallons of water in a day, but that was not enough to meet the needs of Accra.

“What we produce each day is not enough. That is why we are always rationing water,” he said.

He said Accra needed 150 million gallons of water each day, and GWCL was working hard to make up for the 60 million deficit.