The National Water Commission (NWC) is banking on a proposed tariff increase to bail it out of its financial troubles.

The NWC lost $2.5 billion last year but is anticipating a turnaround in the numbers this year, based on the anticipated increase. The commission has already applied to the Office of Utilities Regulation (OUR) for a 44 per cent increase in tariff.

Having completed its consultations, the OUR was expected to make a determination at the end of March, but has since announced a delay. But even as it waits on the decision of the OUR, the NWC has factored in a healthy tariff increase into its revenue for the year.

According to estimates recently tabled in Parliament, the NWC is expecting a 48 per cent increase in revenue this year. The upbeat projection is based on what the NWC says is a revised tariff structure, which will become effective before the end of June.

The company says this should move its income to $15.3 billion, up from $10.3 last year. The company is projecting that it will collect $10 billion for the provision of water. This would represent a sharp increase from the $6.5 billion it collected last year.

With expenses expected to increase at a slower rate, the NWC is projecting that its losses for the year will be reduced by more than 90 per cent, to $222 million this year.