The Public Utilities Commission (PUC) has approved a 5% decrease in Water tariffs following an application by the Guyana Water Incorporated (GWI).
The approval was granted with the expectation that GWI would recover any lost revenue via a rollout of 42,000 meters by the end of 2021.
“By virtue of its 2021 metering programme, Guyana Water lnc will be properly positioned to recover its losses in revenue which stands at approximately $202 million per year or an average of S16.8 million per month,” an Order issued by the PUC yesterday explains.
According to the Order, No.2 of 2021, issued by the Commission, GWI applied on April 13 for a reduction of the tariff on water charges; an implementation of a 2021 Budget measure approved by the National Assembly.
During a public hearing held via zoom on April 28, GWI Chief Executive Officer Shaik Baksh and Executive Director for Business Development Jaigopaul Ram sought to convince the PUC that the proposed reduction is just and reasonable and to allow for the assessment of its financial impact on GWI.
As part of the application the utility company stated that the expected revenue loss from the reduction would be alleviated by several key programme areas in its strategic plan for 2021 to 2025.
These programmes include the widening of the customer base through increased access to water, better leakage management and level of service, an increase in treatment plants, a rehabilitation of the Georgetown network, reduction of non-revenue water and a roll out of a metering programme.
Specific targets for the mentioned programmes include metering of 90% of customers by 2025
Additionally the reduction would not impact ancillary, fixed or sewerage charges.
The company is said to have indicated that all projects were to be funded by the government of Guyana and by loan and that government had settled GWI’s debt to the Guyana Power and Light (GPL) which would significantly decrease expenditure in 2021.
Following an expression of support from the Guyana Consumers Association and an assurance from GWI that the reduction would be implemented without any adverse effect on the accuracy of its billing system the measure was approved.
The new tariffs are effective from March 4, 2021.
The PUC has also reiterated its position first indicated in 2018 that non-revenue water should be reduced on an incremental basis and that all customers should be metered by December 31, 2024 or such time as may be practicable.
