If Belize Water Services Limited (BWSL) had its way water rates would have gone up by 32% but the Public Utilities commission denied the request and only gave them 17%. Well water consumers brace yourself because BWSL might get its way. The final decision on water increases are now in the hands of a judge as BWSL is taking the PUC all the way to the Supreme Court to challenge the decision.
Today in his first public comment since the PUC's decision BWSL CEO Martin Greenhalgh says his company has filed a motion with the supreme court asking for a leave for judicial review because the PUC's decision was flawed. More importantly Greenhalgh says that for BWSL to remain viable and profitable, there needs to be a further increase in water rates.
Martin Greenhalgh, Chief Executive Officer BWSL
"We feel that the decision made by the PUC does not enable us to guarantee that for the long long term the security of supply to our customers."
"Money needs to be invested in the system in order to make the security of supply more secure. And that is why we requested more money in terms of the revenue through tariff increases from the PUC."
Keith Swift,
What are you seeking in this judicial review?
Martin Greenhalgh,
"I think we have to be careful just how much we say in public domain. The filings that we made in the court are probably a matter of public record in any event. So rather than me trying to elaborate about what the legal documents state I suggest that you read that documentation."
Keith Swift,
So are you saying BWSL needs the 32% increase that it requested to remain viable?
Martin Greenhalgh,
"The judicial review is not necessarily one which is automatically saying we need more tariff increase. It questions the rationale and the logic of behind the PUC's decision and a number of elements of that decision. We are also questioning whether the PUC hasn't followed the bylaws. So the judicial review in itself does not itself lead towards an automatic increase. The judicial review seeks to overturn, as one of its central recourses, the PUC's decision."
Keith Swift,
To make this company more profitable would BWSL's management consider cutting the management fees which have been described as top-heavy and…well exorbitant?
Martin Greenhalgh,
"It's a debatable point as to whether they are too much. The PUC has now rendered a decision on management fees based on the recommendations we believe, and we can only say we believe because we don't know and we haven't been told, of an independent expert. We will challenge those decisions and one of them will be the management fees."
Keith Swift,
You think the management fees are justified?
Martin Greenhalgh,
"I believe they are justified in terms of the amount of benefits we get from the shareholders yes. We have a difference of opinion with the PUC, yes that's for sure."
The PUC says it has received notice of legal action however no court date has been set. The PUC also says it is prepared to defend their decision. But while BWSL prepares to take the PUC to court, in a strong statement Prime Minister Musa today took the water monopoly to task. Commenting on water shortage in Belmopan, Musa agreed with Belmopan Mayor Anthony Chanonna saying it wouldn't be out of the question to reconsider buying back BWSL.
Hon. Said Musa,
"I fully understand the frustration of the Mayor of Belmopan and indeed the frustration of many Belizeans with the manner in which BWSL has been conducting its business. And it is not a far-fetch idea for the mayor to suggest that the government should consider the issue of re-nationalization of this industry. It is not something that we should dismiss as an option that we shouldn't possible consider. But of course no decision has been taken on that issue."
Responding to the Mayor's comment, CEO Greenhalgh says he was surprised by Mayor Chanonna's comment since they have been cooperating through the crisis. We will have more from CEO Martin Greenhalgh later in the newscast when he addresses the water crisis in Belmopan.