The Ghana Water Limited (GWL) and the Electricity Company of Ghana (ECG) have attributed their over 200 per cent proposed utility tariff increase for the 2025–2030 Multi-Year Tariff Order to the devastating impact of illegal mining (galamsey) on their operations.
According to the two state-owned utilities, the widespread destruction of water bodies and power infrastructure by galamsey operators has led to skyrocketing operational costs, making it increasingly difficult to sustain affordable services.
GWL explained that illegal mining activities have severely polluted key water sources, forcing the company to use more chemicals and resources to treat water for public consumption. This, officials say, has placed a huge financial strain on the utility provider, contributing significantly to the push for higher tariffs.
The ECG also raised concerns about the destruction of its distribution network, particularly in forested areas where illegal miners have dug dangerously close to power lines.
Speaking at a public hearing on the proposed tariff adjustments in the Ashanti Region, the Director of Communications at ECG, William Boateng, said mining pits around power installations pose a major threat to network stability.
“They are digging and moving towards the roads and trenches, which is very dangerous. Anytime we have the slightest rainfall, the poles come down because the base has been weakened. That affects the stability of the power supply,” Mr Boateng explained.
He added that damage from illegal mining often triggers chain collapses, bringing down several poles at once.
“It costs us more money to fix the fallen poles and restore the line. Beyond that, we are also losing unserved energy — power that we’ve already purchased but cannot deliver to customers,” he noted.
Both GWL and ECG stressed that tackling the environmental damage caused by galamsey is critical to maintaining affordable and reliable utility services. They warned that without urgent action, rising operational costs could continue to push tariffs higher, ultimately affecting households and businesses nationwide.
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