Young Entrepreneurs Association calls for phasing of any agreed NWC rate hike

 

 

The Young Entrepreneurs Association of Jamaica (YEA) is calling for a phased implementation of any agreed tariff increase to water bills to avoid a potential hike in inflation. 

 

YEA President Cordell Williams says while the proposal could improve the viability of the Commission, there are other critical pillars of the economy that must also be considered. 

 

The NWC is owed $23.88 billion, $19.3 billion of which is considered bad debt.

 

But Ms. Williams is urging the OUR to conduct a thorough assessment before making its decision. 

 

"I think they should look at reviewing the process, ensuring that there's meaningful consultation with the MSME stakeholders and that an impact assessment is done before any entertainment of such increase is done, and of course, that the tariff adjustments are accompanied by measurable commitments on the NWC's part to address operational efficiency, financial accountability and of course reducing the water losses that are already impacting the sector, and of course improving service delivery," she suggested.

 

Ms. Williams said the overture, as presented, could result in added pressures such as undue strain on micro, small and medium businesses, which would affect profitability.

 

"For MSMEs, of course, this is not just another utility bill. It's input cost for production, daily business operations and this can significantly affect, we anticipate, the profitability, the ability to be competitive and of course that will be passed on to the consumer, which, you know, the multiplier as I said, is going to be significantly negative at the end of the day. So there needs to be some consideration and some balance. And it will be particularly challenging for, you know, companies in water intensive sectors, you know, food production, hospitality, manufacturing, agriculture, personal care and other services," she warned.

 

She was a guest Thursday on Radio Jamaica's Real Business.