Galamsey Driving Up Utility Costs — ECG, GWL Justify 200% Tariff Proposal

The Electricity Company of Ghana (ECG) and Ghana Water Limited (GWL) have cited the destructive impact of illegal mining, commonly known as galamsey, as a key reason behind their proposal to increase utility tariffs by over 200% under the 2025–2030 Multi-Year Tariff Order.

According to GWL, the widespread pollution of water bodies caused by galamsey has significantly escalated the cost of water treatment, placing considerable strain on the company’s resources and operations.

The ECG echoed similar concerns, noting that illegal mining activities have severely affected sections of its power distribution network, especially in forest reserves. These disruptions have resulted in frequent power outages and increased maintenance costs.

Speaking at a public hearing on the proposed tariff adjustments in the Ashanti Region, ECG’s Director of Communications, William Boateng, described the situation as alarming.

“They are digging and moving closer to roads and trenches, which is very dangerous. Anytime it rains, the poles fall because the soil base has been weakened. This compromises the stability of our power supply,” he said.

Mr. Boateng further explained that such damage often causes chain collapses along power lines, with multiple poles falling at once, leading to costly repairs and service interruptions.

“It costs us significantly more to replace fallen poles and restore the lines. Additionally, we suffer losses from unserved energy, electricity we’ve purchased but can’t deliver to customers,” he added.

Both utility providers emphasized that tackling the environmental destruction caused by galamsey is essential to maintaining a stable, affordable, and sustainable supply of water and electricity for Ghanaians.

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