Water rates have gone up - how much? Well it varies but you'll know when you get your water bill in May.
The increases come after months of back and forth between BWSL and the PUC. And today the PUC's chief technocrats held a press briefing to tell the public what to expect.
Alfonso Noble Reporting,
After 6 months of consultations and back and forth with the Belize Water Services Limited, he Public Utilities Commission announced that water rates will, not surprisingly, be going up.
Dr. Gilbert Canton, Executive Chairman PUC
"BWSL has asked for 32%, our initial suggestion was 15%, and the independent expert recommended 17%. After reviewing the submissions and things that were made during the period of review, we agreed that we should go with what the independent expert recommended which is 17%."
Harry Bennett, PUC
"Their revenues, for example this fiscal year which is almost finished, is around $21 million so this rate increase will adjust that revenue to $26 million. So they will have about a $5 million increase in the next fiscal year."
"The way we set the rates is that we want to make sure that the people who consume 1000 gallons or less, which is the low consumer usually, that they will not be affected so those consumers will pay the same rate."
"The people who are up to 4000 or 5000 gallons or less will pay 17% or less on their tariff. People above will pay 20 or 25% depending on how much you consume. The more you consume, the higher percentage you pay of your current bill."
Dr. Gilbert Canton,
"The larger consumers will be paying more of the increase than the smaller consumer so the effect on the smaller consumer won't be great."
But even if the small consumer doesn't bear the brunt of the increase that hovers between 17% & 25%t depending on how much is consumed, there are other costs that will increase. Including the cost of reconnections. The PUC says this is largely to encourage prompt bill payments.
Dr. Gilbert Canton,
"The other charges are not really a revenue mechanism but more a deterrent for people to not cut or cut off water etc."
And while there may be etceteras for the consumers there are also details for BWSL which will has to meet certain demands. Included in these is a reduction in the loss of what's called non-revenue water, which at present is well over 40% of water that's extracted.
Harry Bennett,
"Based on the investment that we had approved, it will bring down non-revenue water by 31% by the end of the 5th year. That's expected from them based on the investment we have approved."
Dr. Gilbert Canton,
"Based on the improvements in the system, they should be performance targets. For example if we give you money to upgrade the network, where there are leakages and such, then the pressure should increase etc. etc. So what we are saying is that we will set at certain locations pressure standards and you have to maintain those pressure standards. If you fail to maintain those pressure standards then we will look at a way of recuperating that money we are giving you to do it."
Also BWSL will be expected to fulfill and abide by codes of standards that will dictate the rules of engagements between the company and its customers.
Danalyn Myvette, PUC
"It lays out the roles of both parties, the rights and obligations of two parties because two parties are involved and in some instances the PUC as an appeal entity. So it had to be as clear as possible so throughout the full tariff review and prior to that, we were working on some minimum set of codes surrounding some of the critical complaints that customers have been bringing to the PUC and otherwise through the media."
"It lays out a customer codes, disconnection codes, and illegal usage codes. This is a new atmosphere within which the company will be operating. They had to be given some reasonable amount of time to put in place the infrastructure that they would be able to administer these codes within and that time was set at 12 months. Subsequent to that, penalties will then come into effect if the company is not meeting any of these standards or violates any of them out rightly."
So while there may be some give and take in this one the bottom line still remains, water rates are going up by an average of 17% for larger consumers.
The new rate structure came into effect on April 1st but you won't get any bills with the new rate until May. You can review the new rates yourself on the PUC's Website.