NWC Applies for 51% Tariff Increase, Citing Rising Expenses

The National Water Commission (NWC) says increasing operating expenses, including energy costs, have made it necessary to seek higher water tariffs.

The commission’s Chief Financial Officer, Fabian Christie, told Parliament’s Public Accounts Committee (PAC) that the company’s revenue situation has deteriorated over time in relation to customer payments.

The NWC is seeking a 51 per cent tariff increase from the Office of Utilities Regulation (OUR), with approximately 500,000 customers potentially affected by the proposed adjustment.

Christie explained that the requested increase was necessary to address the rising cost of operating the utility company.

The NWC has also indicated that the adjustment would help bring its earnings into line with its expenditure.

The proposal is accompanied by an investment plan that outlines priority initiatives for which the commission intends to secure financing.

Acting NWC President Kevin Kerr told the PAC that the investment programme would have to be revised if the regulator declined to approve the requested 51 per cent increase.

The commission last received approval for a tariff increase in 2019.

Meanwhile, members of the public will be given an opportunity to contribute to the OUR’s review of the application through a consultation process before a determination is made.

Kerr disclosed during Tuesday morning’s PAC meeting that the tariff application had been submitted to the OUR the previous Friday. He also indicated that an announcement from the regulator was expected shortly.

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