…GWI says in justifying proposed tariff hike

THE Guyana Water Inc has tied its proposed hike in tariffs to insufficient revenue to meet its operational costs even as it argues that it was still functioning under a 2005 tariff regime.

This was disclosed when the company appeared at a Public Utilities Commission- sponsored public hearing held at the Cara Lodge to justify its request for an increase in tariffs. At the hearing, several spirited citizens were present and raised concerns over the absence of the water company’s 2016 audited financial statement, the high numbers of un-metered consumers and the absence of comparative data on existing and proposed rates.
At the engagement which involved representations from the Public Utilities Commission (PUC), interjections originating from the audience caused the GWI to curtail its opening overview and zero in on the proposed increase in tariffs.

The increase in rates are being proposed on the basis that the company’s revenue streams are insufficient to meet its total operating costs and the utility is still operating under the 2005 tariff regime. Customers’ cries of “discrimination” and “highhandedness”; filching of water which escalates production costs and water waste were among the reasons justifying the increase which GWI says will also facilitate the improvement of service and water quality countrywide.

The proposed tariff will see residential and non-residential customers paying a fixed charge of $500 when consumption is zero and will no longer be billed on the compulsory minimum consumption of 10m³ and 15m³ but only on the volume they utilise.

As such, to ensure parity and equity, the proposed consumption charge for Georgetown and non-Georgetown metered-residents is $112/m³ and $150/m³ for metered non-residential customers. For unmetered residents, although the average consumption rests at 25m³ per month, the GWI will charge residents for 13m³ monthly, approximately $1500.
Meanwhile, unmetered non-residential consumers will be charged based on the size of the business categorised as: small, $3,750; medium, $12,000 and large $24,000.

This change, the GWI says, will help to subsidise the cost of maintenance of the infrastructure of the company’s service line to the customer and will be shown on customers’ bill tabulation together with the volume of water consumed.
Pensioners, however, are exempt from the fixed charge and metered pensioners living alone or with no more than one other person will pay $74/ m³ while unmetered pensioners will pay $740 monthly.

It should be noted that pensioners living with more than one other individual will pay the same rate as metered or unmetered residents and pensioners whose volume of water consumption exceeds the average 10 m³ will attract the same rate for every m³ greater than 10 m³.

Audited statements
At the hearing, Social Commentator, Ramon Gaskin grilled the GWI on its proposals to the PUC for an increase of rates when the company’s 2016 audited financial statements were still outstanding. He also called for a comparative table of the rates and stated that the “true inequity” lies in the high number of unmetered customers, such as car washes, who Gaskin says pay nothing for their consumption.

In response, GWI Chief Executive Officer (CEO) Richard Van-West Charles said that the financial statements are in the final stages of being audited with an estimated completion by the end of March. He also said that the issue of persons stealing water would require the assistance of the public in addition to the GWI.
“The public has been very responsive in helping us to find many people who are stealing,” he said, adding: “…the people that are stealing are not necessarily small people. They are big people, they are commercial people.”

Van-West Charles said, too, “We are metering every car wash and the people to the left, right, back and front of the car washes…if they give access to a car wash, they give access at their cost.”

Another resident, who said he was in partial agreement with Gaskin, compiled a document of questions on several matters subsequently presented to the PUC and GWI which the companies have pledged to address before the next gathering.
Several other individual concerns were brought to the forefront on matters such as poor customer service, incorrect estimates of rates, incorrect meter number and payments made to GWI for works not conducted. These matters were noted by the CEO who promised to swiftly address them while matters relating to customer service were managed by GWI’s Customer Relations Manager, Andrea Khan.

Meanwhile, a small commotion erupted at the hearing when differences were observed by Chairman of the PUC, Dela Britton, in separate copies of the Application for Change of Rates. As members of the audience became agitated, the differences which were found in the ancillary rates were subsequently cleared up by the GWI CEO with support coming from Britton who stated that “the differences were not fundamental”. The PUC says that its website will be updated to reflect these new changes and set the next public hearing for Wednesday, 21 February, 2018 at 10:00 am at the Cara Lodge.