PSOJ urges OUR to reject proposed 51% NWC rate increase

 

 

The Private Sector Organisation of Jamaica (PSOJ) has joined a growing block of business interests in expressing concern about the National Water Commission's application for a massive 51 per cent tariff increase.

 

The parliamentary opposition, Small Business Association of Jamaica and the general public have expressed outrage over the size of the increase being sought and the inflationary impact it will have on the struggling economy, if granted.

 

The groupings have urged the Office of Utilities Regulation to reject the application.

 

The NWC has defended its request, arguing that the proposed increase is necessary because the commission's operating expenses far exceed its income. 

 

But in a statement on Thursday, Executive Director of the PSOJ, Sacha Vaccianna-Riley, said the significant tariff increase being requested cannot be accepted at this time. 

 

"The National Water Commission has a genuine financial and infrastructure problem and we recognise urgent need to improve Jamaica's water supply and reliability. However, a 51 per cent tariff increase cannot be approved without clear conditions and accountability. Businesses and households are already under pressure and customers should not be expected to carry the cost of inefficiencies that remain unresolved," she argued. 

 

"We are particularly concerned that the NWC is losing an estimated 70 per cent to 73 per cent of the water it produces through leakage and other forms of non-revenue water. The commission has also spent more than $800 million monthly on electricity. So before customers are asked to pay significantly more, there must be a clear plan to reduce these losses, improve collections and cut energy costs," insisted the PSOJ head. 

 

She has suggested that any tariff increase granted must be phased in and tied to improved performance from the NWC.

 

"We also believe the NWC's outstanding $21 billion GCT liability should be addressed separately rather than passed on to customers through their water bills. The PSOJ is therefore calling for any tariff increase to be phased and tied to measurable performance targets. That means independently verified savings, better service reliability, transparent use of capital funds and clear evidence that promised improvements are being delivered. Ultimately, Jamaica needs a financially sustainable NWC. But sustainability cannot depend primarily on charging compliant customers more. Any increase must deliver better water services, greater efficiency and real value for money," she maintained.

 

The OUR has indicated that it will communicate its decision to the NWC by October 26.