Assessment of the effect of unaccounted-for water (UFW) on revenue generation of Ghana Water Company Limited: Brong Ahafo Region as casestudy

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Unaccounted-For Water (UFW) constitutes a financial leakage and therefore affects revenue generation adversely in the water industry. With average figure of about 50%in Ghana, it is a major problem to Ghana Water Company Limited (GWCL). The objective of this research is to investigate the impact of UFW on revenue generation, examine the impact of unmetered water consumption on UFW, and the relationship between UFW and reported leakages. Historical records of monthly percentage of UFW volume of water sold and reported leakages between 2001 and 2005 were analyzed using regression techniques to establish the relationships between those variables. The consumption pattern of unmetered consumers who were later on metered was analyzed. Unaccounted-For Water was found to contribute significantly to poor revenue generation, while unmetered water consumption was also found to contribute to UFW. To bring down the level of UFW, GWCL should try to meter all customers. Ghana Water Company Limited should encourage the public to report leakages promptly and improve their database especially in respect of leakages. Findings of this research support the New Management Arrangement.
A Thesis submitted to the Department of Economics and Industrial Management in partial fulfillment of the requirement for the award of Master of Business Administration (MBA), 2008