San Pedro water rates skyrocket

The Island Newspaper, Ambergris Caye, Belize            Vol. 14, No. 16            May 20, 2004

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San Pedro is accustomed to paying more than its share for almost everything in the country of Belize. However, the recently published increase in Belize Water Services Limited (BWSL) water rates have amazed and enraged even the most patient island consumer. Complaints received this week at The San Pedro Sun initiated an investigation, which has revealed a rate increase ranging from 0 - 89% according to the Public Utilities Commission (PUC) who approved the increase.

        After an exhausting conversation with the PUC and the Director of BWSL, what was further revealed was that in the end, although consumers were given a chance to file an objection following the initially (published) approved rates (as an example, $34), that is where their rights ended. At these rates, no customers objected but BWSL did, and an independent expert was called in. In turn, this mutually agreed upon "expert" raised the rate higher (to $55) based on his findings. Not only were the consumers not notified of this, they now have no right to object. 

        From a review of the recently published rates, it would appear that BWSL did keep their promise to minimize the impact on low-income consumers. What has many San Pedro consumers crying out loud though, especially at the industrial level, is the gross amount of difference in the rates published last week and the previously published rates consumers were able to comment on during the Public Utilities Commission Tariff Review.   

        To review the process, a BWSL Business Plan Review Report dated October 29th, 2003 was submitted to the PUC. This document was made public knowledge and discussed at public meetings in November. Consumers had until November 30th to submit written comments on the rates published in the BWSL plan.

         Initially, BWSL asked "to increase its income by around 30%," stating a substantial portion of the increase would need to be derived from adjustments to the existing tariff structure. This action came on top of the 20% rate increase already suffered by many as a result of BWSL changing water meters from Imperial gallons to US gallons. It should also be noted that BWSL admitted that 49% of their lost revenue was due to water leaks and illegal hookups.

        In this plan, the water company stated their intention to "minimize the impact of tariff increases on social groups least able to afford significant increases." These four social groups and their consumption levels were listed as: "1A" - Social (using 500 gallons or less), "1B" - Low Consumption Band (500-2,500 gallons), "2" - Commercial (2,500-8,000 gallons) and "3" - Industrial (8,000 or more gallons). The following figures represent the percentage of consumers the category comprises and the rate increase percentage proposed for each: 1) Social -14% - 14.47% increase, 2) Low Consumption - 49% - 18.03% increase, 3) Commercial - 32% - 29.22% increase, and 4) Industrial - 5% - 41.52% increase.

        On December 15th, 2003, the Public Utilities Commission published their initial decision under the First Full Tariff Review Proceedings. This decision approved a 15% revenue increase effective April 1st, 2004, with tariff structures and a schedule of other charges. The tariff rates published reflected a very small differences in the rates requested by BWSL and what the PUC approved for San Pedro. Although consumers had a two-week period to issue their written complaints, the difference did not appear to be significant at that time.

        The PUC stated it would issue a final decision on the matter by April 17th, 2004. Last week, an advertisement issued by Belize Water Services Limited (appearing in this edition of The San Pedro Sun) stated the following: As a result of the PUC's final decision on Water Tariffs, which was issued on April 19th, 2004, the rates listed below are effective for water consumption as of April 1st, 2004. Please note that water bills issued in April 2004 were for a 30-day or a 31-day period, which spanned the months of March and April 2004 but were billed at the old rates and that customers will be billed a pro-rated adjustment for the April portion of that consumption only. The adjustments will appear on bills issued in May 2004.

        The SP rates published last week showed a dramatic increase from the rates published in the initial PUC decision on December 15th, 2003, more significantly impacting commercial and industrial consumers. To clarify this, a comparison of the rates requested by BWSL, approved by the PUC and the final rates decided will be used. For example: Quantities Used over 8,000 gallons - BWSL requested $37.50 (October 2003) - PUC approved $34.00 (December 2003) - Final Decision - $55.00 (April 2004), a difference of $21 per 1,000 gallons used. Although consumers had time to object to the initial PUC approved rate of $34, reportedly, no one did. Belize Water Services Limited objected to the PUC's lowered rates, so an independent expert (mutually agreed upon by BWSL and the PUC) was called in, gave his recommendations and the final decision on the rates was made. The public was notified of this in an advertisement from BWSL in last week's city papers but, reportedly, consumers have no further rebuttal to this decision, according to the "bylaws."

        Speaking with local hoteliers and other large consumers of water on the island, it was learned that their only recourse is to raise their rates of service as well, which will eventually be passed on to the other end of the consumer chain. Well, as they say, that's progress - NOT!



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