Case study 2

Inequitable Payment for Water in Ghana

By Ama Kudom-Agyemang

When it comes to meeting the water needs of people, one critical issue is whether it can be made affordable for all, especially the poor. Unfortunately, water is so indispensable that a scale of preference does not determine its demand and purchase. Some people are of the view that this has resulted in inequitable payment of water tariffs by Ghanaians.

At a workshop organised by WaterAid Ghana and WEDC to solicit ideas for a study into Small Scale Water Providers in Ghana, Ama Kudom-Agyemang, a Ghanaian journalist, analysed the water tariff situation in Accra.

If you are living in one of those communities which do not have access to piped water, the chances are that you may unknowingly be paying far more for water than you should. For most of these people, getting water for basic needs, means paying between six and ten times the price they should be paying for a bucket which holds four gallons of water.

Currently, the cost of a four gallon bucket of water is about 60 cedi (¢) (US$0.007) as set by the Public Utilities Regulatory Commission. Yet, residents of water deprived suburbs of Accra like Taifa, Ashongman, Adenta Down Madina and Kasoa are paying between ¢300 to ¢500 ($0.03 - $0.06) and in some instances ¢1000 ($0.1) for a bucket of potable water. Indications are that this trend also pertains in other parts of the country too.

At a recent meeting organised by the Secretariat of the Water Sector Restructuring Programme for members of the Association of Ghana Industries, concern was expressed about the inequitable payment of water tariffs by Ghanaian taxpayers. Both the President of the Association, Mrs. Elizabeth Villars, and the Minister for Works and Housing, Yaw Barimah, described such payments as clear cases of unnecessary cheating and injustice.

Based on this information, I decided to undertake case studies on the amount of money spent on water by families in selected areas of Accra and came up with startling results.

A family of six living in a two or three room apartment in Taifa for example, spends on the average, about ¢2000 ($7) per week buying the water that they need for the week's domestic chores (about 124 four litre buckets) from water vendors. The vendors in this case are those who, at their own expense, have connected pipes or buy water from water tanker services. The daily breakdown includes six buckets of water to flush the toilet, another six for bathing at least once a day and four buckets of water for cooking all of the day's meals as well as for washing dishes. Ten buckets of water are used to wash clothes twice a week and at least two buckets are used for cleaning the house once a week. This means the family spends about ¢248,000 ($27.87) on water every month.

Of course this amount may be less depending on a number of factors. The amount varies on the size of the family, how family members use water, whether the family is able to harvest rainwater or not and what type of toilet facility is available for the family's use. A family that uses a public place of convenience obviously spends less on water. But what happens is that members end up using less water than is required for basic needs because of financial constraints. And this invariably affects their health.

The same family size living in other areas, such as Roman Ridge, that are connected to pipelines and have regular access to water spend less than a quarter of the amount that the Taifa family spends on water monthly. My calculations are that such a family spends just about ¢27,360 ($3.07) monthly for the same quantity of water required for similar chores as the family in Taifa. This is based on the ¢60 ($0.007) tariff charged to customers by the Ghana Water Company Limited. Of course, the amount mentioned does not include metre and rural charges. But even when these charges are included, what this family pays would not get anywhere near to what the Taifa family pays monthly for water.

As incredible as it may appear, if the family in Roman Ridge pays more for water, it is because they use lots more water than their Taifa counterparts. However, these residents do get an idea of what it is like to pay higher charges for water when their taps run dry for a long period.

Another family I checked on in Taifa, buys water from hand-dug wells for all of its domestic chores but buys piped water from vendors for drinking. This family spends less than the family that uses only potable water spends. Its weekly expenditure on water is about ¢14,400 ($1.62) and ¢57,600 ($6.47) a month. It pays ¢100 ($0.01) per bucket of water, which is moderate.

These calculations imply that many poor people are paying a very high price for water compared to the minimum monthly salary of ¢400,000 ($44.94). It also implies those in the higher income earning group are paying far less than they should pay for water.

The disparities can be explained. Previously, utility services including water were provided for only existing residential and industrial needs. New residential areas close to such places did not have a problem getting connected to water because the pipes were already laid. A source at the Ghana Water Company Limited explained to me that residential areas that have been developed lately, which are far from away from the older settlements do not get water even though they may have pipes laid in the area. He said the practice has always been for water services to be provided just to meet the demand at a particular time. The provision did not account for the increased demand for water because of the increased population and infrastructure development. The situation has further been worsened by a trend in the country where development precedes planning.

As a result a gap was created in the demand and supply of water which private water tankers filled. Residents in some deprived areas buy water from the tankers at between ¢200,000 ($22.47) and ¢300,000 ($33.71) per 1000 to 2000 gallons of water. Depending on the size of the family the water can last for a month or a month and a half. But from calculations made earlier, this amount is also too much to pay monthly for water since some families might end up buying about ¢500,000 ($56.18) worth.

What has been said so far indicates the existence of too many lapses in the country's water supply system. The brunt of it is being borne by the poor. Findings of a study on the accessibility of water in the urban water sector conducted last year by Public Utilities Regulatory Commission say that 53% of urban dwellers do not have access to potable water. Of these, 78% are poor. While only 15% of those that have regular access to water, are poor.