On Monday the Public Utilities Commission announced the end of its first full tariff review for Belize Water Services Limited.
The news was that water rates were going up by an average of 17%. But that's the average; some will pay a lot less than that while volume users will pay a whole lot more.
It's a package of mixed offerings, some good, some bad and some just plain ugly. But BWSL hasn't offer its customers any explanation, so we spoke to one former company employee who been studying the ins and outs, ups and downs of the new rate package.
Keith Swift Reporting,
We are all expecting that when the next water bill arrives, there will be an increase. The Public Utilities Commission made the announcement on Monday morning. But what still remains a mystery is by how much will it increase? The PUC explained it on Monday as being on a slope and they said the average increase would be about 17 percent.
Dr. Gilbert Canton, Director PUC
[Monday April 19th] "In appendix 2 there is a tariff structure that provides for 17% increase in revenue effective April 1st 2004."
Many water consumers have been lost in that techno-babble. For some dollar and sense on the rate increase we turned to former WASA Engineer John Avery. The consumer watchdog watered it down for us.
John Avery, Consumer Watchdog
"For some people they will actually see a decrease. Some people will actually see no increase. Those are the people who are in the areas that were previously charged for sewer rates but didn't have sewers and they have been removed out of that group so they won't see any increase. But for the most part, people will see increases ranging from zero to say 25%. That is for mainland customers and in San Pedro increases will range all up to 90%, 89.6% around there."
Then there is the dollars and cents aspect of the water rate change.
John Avery,
"Like for example under the current rate, somebody using 10,000 gallons used to pay $143.26 and now they will pay $178.50 so that is an increase of $35.24 or an 24.6% increase. Now look at somebody say 4,000 gallons who used to pay $51.50 they will now pay $58.00, which is an increase of $6.50 or 12.6%. So it varies."
"If you use say 3,000 gallons per month, you will see an increase of 8% on the bill. If you use 10,000 gallons per month you will see an increase of 57% on the bill. So in San Pedro that is where the biggest increases will be. For example, the 10,000 gallons remember the new rates in Belize City would be $178.50 and in San Pedro for 10,000 gallons it will be $408, which will be an increase of 57% or a $148 every month. So people will see varying increases. The biggest increases will be in San Pedro. Some people will actually see a decrease in their bill but overall my personal opinion is that the actual increase in revenue should exceed the 17% as estimated by the PUC."
It does vary and admittedly it is on a slippery slope as described by the PUC. But if you think paying extra money for water makes you the loser, think again. Avery said BWSL is actually the loser.
John Avery,
"I would not be surprised if this matter is taken to court."
And it is not only because BWSL didn't get their requested 32%. Avery, who worked with BWSL, when it was WASA, says that there is no way the water increase stipulated by the PUC will suffice.
John Avery,
"If you consider the dividend requirements, if you consider the interest and the repayment to the Alliance Bank loan then to meet all those requirements BWSL would need at least a 75% increase in rates."
"At this point in time, dividend payments are BWSL's single biggest revenue requirement and so at the end of the day the amount that we pay more for water has to be measured against the benefits that were derived from that $60 million raised by government. That is the true measure of whether or not these rates are justifiable."
And those issues are probably why BWSL's Central American Boulevard headquarters is quiet about these rate increases.
We note BWSL declined comment saying they are "studying the PUC's decision." They have however promised to comment publicly shortly. You can look at the results of PUC's Full Tariff Review on their Website.