THE EDITOR, Sir:
WE NEED to infuse competition into the provision of the services that our utility companies are now providing; the old monopolistic structures are no longer adequate to deliver the kinds of products and services consumers need. One of the most debilitating characteristics of the monopolist is that it will not engage in any activities where the marginal cost is greater than the marginal revenue. Consequently, the large-scale desalting of catchment tanks to enable reliable, clear water supplies will hardly happen in most areas. Where there exist special topographical or developmental needs that are high in cost to effect, they will not happen.
The same situation exists with the Jamaica Public Service Company. Its service lines need to be safely placed underground but the additional cost will be greater than the additional revenue that it can be make, so under monopoly, it also will not happen. It is much cheaper to insult our people, than to protect the supply of the product that they sell.
Contrast the opening up of the telecommunication sector by Minister Phillip Paulwell to competition and the tremendous impact it has had on communications particularly in the area of cellular products and technology. These companies are competing, they know that they will lose market share if they refuse to invest, and that the cost of some of their investments can only be recovered in the long run, they have to keep current and be ahead of the competition.
The collection rate of the National Water Commission is 40%. In contrast, it is reported that a private entrepreneur granted a licence by NWC to operate a water supply in St. Ann has a collection rate of 95%, and is charging 42% of what NWC charges its customers. The Government has removed the granting of licence to operate water supply systems from the National Water Commission to the Office of Utilities Regulation, an excellent move, which I hope will bring more local entrepreneurs into the market particularly in areas such as Mandeville and St. Elizabeth which have been crying for a reliable water supply system.
The Jamaica Public Service Company should also be made to experience competition (within the framework of its agreement with Government) from independent power suppliers, who should be encouraged to move aggressively into providing power to pockets of the island that are not currently being serviced with electricity.
