By Petulia Clarke, Staff ReporterTHE NATIONAL Water Commission (NWC) will be making a submission to the Office of Utilities Regulation (OUR) for review and consideration of new rates by next week, as the company seeks to combat high electricity charges and maintenance costs and bring customer charges more in line with consumption.
The company says that this has become necessary because the cost of supplying Jamaica with water far exceeds the tariff being charged. The NWC initiated a tariff/cost of service study using international consultants to inform the discussions with the OUR.
"To continue to provide the service, to improve service quality and to reach into new areas, we need the costs to be borne by someone," said the NWC's corporate public relations manager, Charles Buchanan. "Water supply is heavily subsidised. The bottom line is that for the vast majority, what they pay is a fraction of the cost to give it to them."
ASTOUNDING
These added to "astounding electricity costs", are the costs of chlorine and other chemicals, pipe and pipeline costs, as well as "a serious need for mains and other replacement".
The OUR confirmed that an application is expected, with its Director of Analysis and Research, Maurice Charvis, promising that the request will be duly considered with the NWC being given a hearing as is due process. This will include assessing potential efficiencies and analysing how to tie the utility company to performance.
The application can take up to 60 days to be processed.
The NWC, which was last granted a rate increase in 1999, would not disclose the details of the pending submission.
However, Minister of State in the Ministry of Water and Housing, Harry Douglas, stated its necessity, as "the (NWC) infrastructure is collapsing around us".
"We have to do something about it," Mr. Douglas said. "We have the cheapest and best water in the world and we have put a lot of money in the system. A lot of the money will go towards improvement and continued improvement of the infrastructure."
ELECTRICITY AMONG MAIN COSTS
Mr. Buchanan said that among the majority of NWC costs was its electricity costs, with an electricity bill surpassing $100 million per month.
"We're JPSCo's biggest customers... in hilly terrain we have to pump water, which means that we depend heavily on electricity at enormous costs," he said.
He also pointed to a Planning Institute of Jamaica Survey of Living Conditions for 2001, which showed that compared to electricity and telephone bills which exceeded $1,500 per domestic customer per month, NWC bills maximised at $809.
