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
29
th, 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 17
th,
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 15
th, 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!