Lest we forget, let me remind the GWI and consumers of Order No 3 of 2005 made by the Public Utilities Commission in the matter of the application by Guyana Water Inc for an increase in rates.
The PUC comments that preceded the order are also worthy of examination, so please study them and, consumers, please do not hesitate to complain when GWI does not live up to expectations. The telephone number to call is 227-8701.
“We find that the operations of the company are very inefficient, and there appears not to be a too harmonious relationship between the Board of Directors and the Management of GWI, and this of necessity, has lead to a debilitating effect on the operation and management of the company.
“We recommend an active public relations programme to foster good customer relations to try to contain leaks and waste. Non revenue water accounts for 50% of production at the end of 2004, and it is hoped that this should be reduced to about 39% by the end of this year.
“It appears that GWI is more concerned with the quantity of water produced and at present not much emphasis is placed on the quality of water released for public consumption. The Managing Director has conceded that improved quality needs capital investment and that is not on the cards at the moment. He offered that that quality might improve as a consequence of the investments in treatment plants and not as a deliberate act on the part of GWI.
It was also pointed out boreholes are usually in excellent condition but the problem lies with the distribution system during low pressure periods when contamination could result from leakage and seepage.
“We recognize the cost of electricity generally and GWI’s bills are about 64% of revenue. GWI has outstanding balances for GPL and the Managing Director explained that GPL is not willing to discuss rates or tariff unless the amounts are paid off. We are also concerned that GPL suffers loss of about 40% of its production but still collects rates on the total amount of electricity generated. At the end of the day the consumer pays twice – directly to GPL for their losses and then through GWI who pays also for GPL losses and passes these on to the consumers. Against this background, GWI should actively pursue with Guyana Power and Light for some concessionary electricity rates to apply in order to alleviate the burden on consumers. By the same token, GWI should offer GPL a fixed payment schedule to clear the outstanding balance owed to GPL.
“ORDER
* Taking into account all that we have hitherto set out we grant an increase of 10% on the rates at present in force for the unmetered consumers, and an increase of 5% on the rates at present in force for the metered consumers.
* Attached hereto is the list setting out the new rates. The increase shall take effect for the supply of water and sewerage service with effect from 1st July 2005.
* GWI is required to:
1. Reduce non-revenue water to 39.4% as stipulated in the licence.
2. Ensure that there is, on average, a 12 hour flow of water to consumers.
3. Submit to the Commission an aged analysis of the debts inherited from GS&WC and GUYWA and GWI’s proposals for their collection or write off.
4. Ensure compliance with the debt collection efficiency of 80.6% as set out in the licence.
5. Comply with licence standard of metering coverage of 52.7% of Consumers.
6. All unmetered customers to be billed quarterly in advance.
7. Metered customers to be billed quarterly in advance.
8. Install the new billing and accounting systems.
9. Restructure the tariff bands to allow for uniformity and
a smaller number of bands.
10. Comply with the standards set out in the licence in relation to water Quality.
11. If item at 10 cannot be met, submit to the Commission modifications of the standards agreed with the Government and GWI’s compliance with those modified standards.
12. Submit to the Commission any agreement with the Government of Guyana regarding subventions to be given to GWI.
13. Submit to the Commission a copy of the annual external standards audit.
14. Submit to the Commission, not later than 45 days after the end of each month. GWI’s Monthly:
i) Financial Statements. These should include the Profit and Loss Statement, the
Balance Sheet and the Cashflow Statement with explanatory notes.
ii) Aged analysis of debtors.
iii) Analysis of use of electricity.
iv) Detailed water production statistics.
v) Details of non-revenue water statistics.
vi) Progress report on metering programme, and
vii) Water quality test results with explanatory notes.
“Publish in the daily national newspapers the approved rates for the information of consumers; and [GWI] must post up copies of the rates at its several offices and branches in conspicuous locations throughout the country.”
