The Ghana Water Company Limited risk being disconnected if they fail to pay its accumulated debt to the power distributor Northern Electricity Distribution Company (NEDCO).
This comes after NEDCo revealed that the GWCL owes ¢62 million during a revenue collection exercise.
Speaking after the exercise which began on Tuesday, NEDCo's managing director Osman Ayuba warned it would not compromise in its revenue recovery exercise adding GWCL will be taken off the grid if they fail to settle its debt.
“It is a compilation of outstanding bills over the years and I think that we’ve not been very hard on them, that is what has led us to this amount of GH₵62 million. But, with this exercise I'm sure they will put in an effort to redeem themselves,” he said.
Mr Ayuba added that not only will they disconnect their offices but also the treatment plant where water is produced to supply residents in over five districts.
“Water is an essential commodity, yes, but they also sell the water. We get disconnected when we don’t pay so why we should not disconnect them when they don’t pay us?” he quizzed.
Meanwhile, according to NEDCo officials, customers owe the company about GH¢1.2 billion. The company said its targeting to recover about 50% of the revenue.
NEDCo owes the Volta River Authority and the Ghana Grid Company in excess of GH¢2 billion. As part of the exercise, they zoned its operational area into groups led by its managing director to undertake the exercise.
The exercise with the managing director's team started with a visit to the Bagabaga College of Education where the college currently owes GH¢4.1 million. Unable to pay the amount or reach an agreement with NEDCo, the college had its power source disconnected.
The team's next stop was the Aliu Mahama Sports Stadium and the Tamale College of Education, which owe about GH¢466,000 thousand and GH¢3.5 million cedis respectively.
These two institutions were also taken off the grid after failing to pay their debt.
At the Tamale Technical University, an agreement was ready with NEDCo for a plan to get them to pay their debt. The University said it would pay GH¢100,000 out of the arrears while a new payment plan is developed to help them settle the rest.
Meanwhile, the managing director described the exercise as a success following the recovery of some amount and the disconnect of some institutions.
"I will describe it as a success for me and my team," Mr Ayuba said.
Latest Stories
-
About 95% of PWDs in Obuasi have source of livelihood – MCE
3 mins -
Immigration Service intercepts 54 gallons of fuel
5 mins -
Election 2024: Roman Fada selected as flagbearer for Ghana Freedom Party
13 mins -
Bawumia to launch Ghana’s credit scoring system on Nov. 7
17 mins -
Alan to combat galamsey with strategic youth-centred business model
21 mins -
Agona Swedru chiefs commit to ending child marriage within their jurisdiction
34 mins -
Sunyani Traditional Council endorses Bawumia – NAPO government
37 mins -
Adutwum defends double track in Free SHS, citing research and positive outcomes
41 mins -
‘Prevent and condemn illegal pressure on Judiciary’ – AG to GBA
46 mins -
Mahama alleges biased development allocation by NPP
47 mins -
Do not rely solely on foreign investments for your operations, business told
52 mins -
Boeing strike ends as workers accept new contract
2 hours -
GAF will not relent in its quest to counter external threats – GOC Southern Command
2 hours -
Election 2024: Bawumia reiterates commitment to promote sustainable mining practices
2 hours -
Ensign Global College promotes health and community well-being at Ngmayem Festival 2024
2 hours