NewzGhana Water Limited could receive additional revenue if it reduces its non-revenue water rate below 40 per cent, the Executive Secretary of the Public Utilities Regulatory Commission (PURC), Dr Shafic Suleman, has disclosed. He said the incentive would enable the utility company to undertake further investments in its water production and distribution infrastructure. Dr Suleman disclosed this on Joy FM’s Super Morning Show on Wednesday, September 2, during a discussion on the topic, “Is Ghana’s water quality and access under threat?” The PURC currently allows Ghana Water a non-revenue water benchmark of 45 per cent under the five-year Multi-Year Tariff Order.
The regulator expects the figure to decline progressively to about 43 per cent over three years. However, Ghana Water’s non-revenue water rate stood at 47.6 per cent as of June 2026, exceeding the regulatory benchmark. “If they are able to reduce it below 40 per cent, the extra incentive goes to them as additional revenue for them to use for their subsequent investments,” Dr Suleman said.
He explained that the incentive-based regulatory framework also imposes a financial penalty when Ghana Water fails to meet the approved benchmark. “As much as they are not able to meet the benchmark of 45 per cent and systematically [reduce it] to 43 per cent, they are being penalised for it because the tariff is not able to allow them to recover all the needed revenue,” he stated. Dr Suleman said the PURC was monitoring Ghana Water’s infrastructure investments and could tighten the benchmark if the company consistently reduced its non-revenue water rate to about 40 per cent for three or four months.
Non-revenue water refers to treated water that does not generate income for the utility because of leakages, theft, illegal connections, faulty meters, and billing challenges. Consumers partly bear the cost of water lost by Ghana Water Limited through the tariffs they pay, the Executive Secretary of the Public Utilities Regulatory Commission (PURC), Dr Shafic Suleman, has disclosed. He explained that the PURC’s tariff framework allows for a non-revenue water rate of up to 45 per cent, meaning a portion of water produced but not billed is factored into the utility’s revenue requirements.
Dr Suleman said the high level of non-revenue water remains a major concern for the PURC, given its impact on the efficiency and financial performance of the utility. “The commission is much more concerned about the non-revenue water issues with Ghana Water,” he said on Joy FM’s Super Morning Show on Wednesday, September 2. He was speaking during a discussion on the topic, “Is Ghana’s water quality and access under threat?” According to Dr Suleman, while the 45 per cent benchmark is incorporated into the tariff, Ghana Water is penalised when it exceeds the threshold because it is not allowed to recover the full revenue requirement associated with the excess losses from consumers.
He said the PURC’s incentive-based regulatory framework is also designed to reward Ghana Water for reducing its losses. READ ALSO: Ghana Water loses nearly half of daily supply to theft and leakages – Adam Mutawakilu If the company succeeds in bringing non-revenue water below 40 per cent, he explained, it would be allowed to retain additional revenue to support future investments. Dr Suleman said the PURC was monitoring Ghana Water’s investments in transmission pipelines, distribution networks and improved metering systems to ensure that water losses are progressively reduced.
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