Guinness Ghana Breweries Plc, one of Ghana’s leading alcoholic beverage manufacturers, has been disconnected from water supply by the Ghana Water Company Limited (GWCL). The action followed allegations of the company’s failure to pay a debt of GH¢6.7 million.
In response, Guinness Ghana has accused GWCL of taking the drastic action without following due process. The company claims that it had been fully compliant on all bills based on its classification under the industrial rate, pending a resolution of its petition to the Public Utilities Regulatory Commission (PURC) on the arbitrary reclassification by GWCL.
According to GWCL, the beverage company had received several caution letters to settle the debt, but to no avail. It, therefore, cut supply to Guinness Ghana’s site at Achimota in Accra after the non-payment of bills persisted.
Guinness Ghana, however, argued that GWCL took the action despite resolutions agreed upon from a meeting held on May 9, 2023. The meeting was chaired by the Minister of Sanitation and Water Resources and attended by the Managing Director of GWCL and the leadership of Guinness Ghana.
The company has openly engaged Ghana Water Company Limited, the Public Utilities Regulatory Commission and the Ministry of Sanitation and Water Resources on numerous occasions to resolve its concerns following the arbitrary reclassification of the business in the September 2022 tariff adjustments.
For the most part, Guinness Ghana insists that it has not defaulted on its bills and has called for the reinstatement of water supply to its site at Achimota. It also urged the relevant authorities to address the arbitrary reclassification of its business by GWCL, which has resulted in the disputed debt claims.
In a nutshell, the water supply disconnection has disrupted Guinness Ghana’s operations and may have ripple effects on the company’s revenue and employees. Both parties have, however, expressed their willingness to resolve the matter amicably through further discussions and engagements with the relevant authorities.