The Public Utilities Commission called a press conference on Wednesday January 31 in which it announced that it has made a decision to adjust water rates and it will be downward.
Chairman of the PUC stated that the institution held a Full Tariff Review Proceeding on BWS in 2014 during which rates were set up to 2020. Unlike Belize Electricity Limited, which has a greater fluctuation on factors that affect the price of the utility, BWS does not have such. Because of this, an yearly review is not necessary. This year however, Avery noted that there were enough unresolved issues for the Annual Review Proceeding (ARP) to take place and that has now been concluded.
During the ARP a number of factors are taken into consideration including the amount of investment that the utility made, the book value of the company’s assets as well as contributed capital whether by grants or investments by government. These values are contrasted with the various revenues the company makes and a rate is set for the company to recover its investments as well as make a profit on them.
After all the number crunching, the PUC determined that the company should be making a 9% rate of return which is an increase of 1% from the 8% which it is currently earning. But even with a greater return, the company should implement a decrease of 6.39% on the current rates. For consumers it means that those using water on the mainland the price will go from $8.72 for 1 thousand U.S. Gallons to $8.16. In Belize and Belmopan it will go from $10.47 to $9.80 while in San Pedro it will go from $25.57 to $23.94. Caye Caulker will also see a reduction from $23.46 to $21.96.
It should be noted that this is just the PUC’s initial decision and the company and anyone who consumes 10 percent or more of the water produced can challenge the decision. If that takes place an independent consultant will be hired after which the PUC will take into consideration that individual’s recommendations and offer a final decision. If this does not take place, the initial decision will be adopted.
