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Ghanaians would have to dip deep into their pockets to pay water bills very soon as the Ghana Water Company Limited (GWCL) has proposed a 39.2 percent increase in tariffs for this year. According to the GWCL, the objective of the upward tariff adjustment is to recover the cost of operations to generate funds to provide limited infrastructure improvement. However, it is unclear if the increment would take place since the Public Utilities Regulatory Commission (PURC) would have to approve it. Already, the Volta River Authority (VRA), Electricity Company of Ghana (ECG) and Ghana Grid Company Limited (GRIDco) are calling for a 125 percent increment in electricity tariffs. And indications are that the PURC is on the verge of approving the upward adjustment in the electricity tariffs because the move would enable the producers to undertake expansion projects to provide reliable power supply. Similarly, additional funds, which would be generated from the tariff adjustments, would enable VRA and GRIDco to buy crude oil to fuel the thermal plants. In a statement, GWCL pointed out that it could not generate sufficient funds internally to undertake the needed improvement in infrastructure to improve delivery, hence the call for tariffs adjustment. �Our services still do not meet the expectation of some of our customers. We wish to propose a 39.2 percent increase in average tariffs,� it noted. The last time the GWCL was granted a tariff adjustment was in November 2007. The statement added that though it was inadequate, inflation and exchange rate fluctuations further eroded the effects that the increment had on Ghanaians. When tariffs were adjusted the last time, the average tariff was $0.98 (using an exchange rate of $1 to GH�0.97). �With the current exchange rate of $1.00 to GH�1.50, the proposal translates to an average tariff of $0.88, which is less than the average tariff granted in November 2007,� it explained. In addition, the average inflation from November 2007 to date is over 30 percent and therefore the average proposed increase in tariff barely covers the rate of inflation within the period. The tariff adjustment confirms earlier reports that Ghanaians would no longer enjoy electricity, water and fuel subsidies, a move that is synonymous with the policy of the International Monetary Fund (IMF).