GhanaWater urged to explore other payment options

Ghana Water Company (GWC) can also consider using a Direct Debit payment system as the company considers options of significantly reducing revenue losses through non-payment of water tariffs. This suggestion was made by the Chief Executive of Ghana Interbank Payment and Settlement Systems, operator of the national electronic payment system.

The National Water Company has indicated its decision to pilot a pre-paid metering system for water as it battles commercial losses due to the refusal of some consumers to pay their water bills. Besides the challenge that pre-paid metering for water is not well-developed, some civil society groups have also criticised the idea, saying it could deprive the poor of a basic necessity for life.

Granting an interview in Accra, the CEO of GhIPSS Archie Hesse said the Direct Debit, which is an electronic payment system that enables a bank customer to instruct his/her bankers to make payments to a third party, provides an  option for the Water Company to reduce its losses.  Mr. Hesse explains that since the Direct Debit is electronic, once the customer issues the instruction the deductions and subsequent transfers will be made automatically. He added that customers who pay by Direct Debit would not need to visit the banking halls to issue such instructions “and that convenience should encourage many more to pay” Mr. Hesse stated.

GhIPSS has different electronic payment systems which various institutions are applying for easy collection of monies due them as well as making payments, and Ghana Water Company can explore some of these options.

Mr. Hesse also intimated that GhIPSS can support Ghana Water Company in case it decides to introduce the pre-paid meters -- by enabling customers to pay their bills with their ATM cards on the hybrid Point of Sales terminals which are being deployed. He said his outfit will not hesitate to have discussions with Ghana Water Company and other utility companies on how they can deploy various electronic payment systems to make it easier for them to collect monies due with an audit trail that will also prevent the revenue collectors from diverting the monies collected for personal uses.

The GhIPSS Boss was optimistic that with various services being rolled-out, there should be a lot of flexibility and convenience in payments of any form in the “very near future” -- such that only the very recalcitrant ones will continue to default in payments. He said electronic payments provide variety of options that should be well exploited.

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