Corporate Public relations manager for the National Water Commission (NWC), Charles Buchanan, has said the increase in rates, being requested by the utility company, will put it in a better position to meet the increasing cost of providing water to new and existing customers.

In addition, he said, it will enable the agency to improve service delivery by earning revenue to improve equipment maintenance, and to satisfy increasing regulatory requirements.

Mr. Buchanan was addressing a public forum held recently at the Old Port Antonio Marina in Portland, to present the case for the 44 per cent increase in tariff being requested by the NWC.

It was the latest in a series of islandwide consultations organised by the Office of Utilities Regulation (OUR).

Inadequate figure

According to Mr. Buchanan, the NWC was last granted a 26 per cent rate increase by the OUR in February 2004, but the amount was inadequate for the company to implement all of the many projects and programmes that were needed to improve service.

He claimed that the average water bill is usually less than half of the average electricity or telephone bill, despite the fact that electricity comprises a major part of the cost of supplying water.

He noted also that water charges from the NWC are also among the cheapest in the region.

- JIS

Reasons for tariff

The main reasons for NWC tariff review, now before the OUR, are:

Inability of the existing tariff to allow for full recovery of the cost of providing water service.

Absorption by the NWC of major costs associated with damage suffered from the series of recent hurricanes and flood rains, with no mechanism to allow the company to return to a sound financial base;

Unavoidable deterioration in service level to existing customers;

Inability to meet demands in new areas if the new tariff is not granted.