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Wednesday, March 27, 2013

PROPOSED NEW TARIFF FOR WASCO: THE CASE


National Water and Sewerage Commission (NWSC) - Draft Determination Notice - PROPOSED NEW TARIFF FOR WASCO

The National Water and Sewerage Commission(NWSC) through the power vested in it through the Water and Sewerage Act of 2005 as amended in 2008 section 37 ( C ) hereby requests comments from the public of St. Lucia on a new proposed tariff for the Water and Sewerage Company (WASCO) for provision of water and sewerage services.

Comments should be addressed as follows:

Executive Director
National Water and Sewerage Commission
Greaham Louisy Administrative Building
Waterfront,
Castries

Ref: New Proposed Tariff for WASCO
Email: stlucia.nwsc@gmail.com

Or

National Water and Sewerage Commission
P.O. Box CP 6307
Castries
St. Lucia



Summary of Decision

Agency: National Water and Sewerage Commission (NWSC)

Water Company: St. Lucia Water and Sewerage Company (WASCO)

Activity: Tariff Review

Type of Review: Extraordinary

Duration of New Tariff: Three Years

Stage: Draft Determination Notice

Decision

The National Water and Sewerage Commission (NWSC) was established through the Water and Sewerage Act of 2005 as amended in 2008 Section 36. The Commission is responsible for regulating the delivery of water and sewerage services throughout the island. Section 37 (1)(c) of the Act gives the NWSC the authority to establish and approve tariff schemes for the water and sewerage Service Provider.

Based on data provided by WASCO, the NWSC has carried out an analysis to determine the rate and the revenue requirement of the company. The Revenue Requirement of WASCO based on the NWSC analysis is EC$ 60,546,307.00 per annum. This will necessitate an increase of 66.15% in water and 140.30% in waste water. Table 1 shows the new rates for water consumption and Table 2 shows the new rates for waste water. These rates shall be effective upon publication of the final determination notice.
Water and Sewerage Rates


Table 1: Water Rates 
Category
Existing Rates per 1000 gallon
% Increase (66.15%)
New Tariff (E.C)
Domestic :            First 3000 Gallons
$7.35
$4.86
$12.21
                    In excess of 3000 Gallons
$15.00
$9.92
$24.92
                      Minimum Charge 2000                       Gallons
$14.70
$9.72
$24.42




Commercial / Industry:
$20.00
$13.23
$33.23
Hotels
$22.00
$14.55
$36.55
Government
$14.00
$9.26
$23.26
Ships
$40.00
$26.46
$66.46
                           
Table 2: Sewerage Rates
Category
Existing Rates per 1000 gallon
% Increase (140.30%)
New Tariff (E.C)
Domestic :            First 3000 Gallons
$5.45
$7.65
$13.10
                    In excess of 3000 Gallons
$10.35
$14.52
$24.87
                      Minimum Charge 2000                       Gallons
$10.90
$15.29
$26.19




Commercial / Industry:
$13.70
$19.22
$32.92
Hotels
$14.60
$20.48
$35.08
Government
$14.00
$9.26
$23.26
Ships
$8.50
$11.93
$20.43

By approving the new tariff for WASCO, the NWSC expects to see some level of improvement at WASCO, and will therefore be engaging the company immediately to establish certain targets, which must be achieved during the tariff period. These are some of the areas that will be given consideration:

 Non-Revenue Water
 Increased efficiency
 Increased response to customers complaints
 More reliable service delivery

 Reduction of inactive customers.

There is a wide gap between total customers (59,998) and active customers (40,976). The NWSC believes that WASCO need to find ways to reduce this difference (19,022 inactive customers). The Government has provided one avenue through the amnesty that was announced by the Prime Minister and Minister for Finance in the Budget presentation of 2012-2013.


Quality of Service standards

The NWSC will engage the Minister of Sustainable Development, Energy, Science and Technology so that the Water and Sewerage (Service Standards) Regulations can be enacted without delay.

Charge: A charge of EC $500,000.00 shall be paid to the NWSC annually by WASCO.

Fees: WASCO shall pay a license fee of EC$200,000.00 annually to the NWSC.

Quarterly Report
WASCO will need to submit Quarterly Reports to the NWSC with the following information:

1. Non Revenue Water (NRW)
2. Outstanding Debts (inactive customers)
3. Information on the Amnesty Program
4. Staffing information (including recruitment s and category)
5. Customer complaints
6. Accounting System
7. Customer Information System
8. Total number of customers (active or otherwise) and category
9. Service interruption (areas; duration and reasons)
10. Detail information on maintenance expenses (administrative expense)
11. Detail information on selling expenses

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