OPPOSITION SPOKES-MAN on Water and Housing, Dr. Horace Chang, is demanding an explanation from the National Water Commission (NWC) for what he describes as the sharp hike in the Price Adjustment Mechanism (PAM) on water bills.
In a release issued on the weekend, Dr. Chang, Member of Parliament for St. James North West, expressed concern about the rate of increase and demanded that "the NWC make it clear to its customers the basis for such a sharp increase in its Price Adjustment Mechanism." He said the increase, which averages 59 per cent, needed an immediate explanation.
The Office of Utilities Regulation (OUR) in January, approved a 26 per cent rate increase in water bills for the water utility. The Commission, which had applied for a 40 per cent increase, argued that an increase in tariff rates was necessary if it were to improve the level of service to the public and upgrade existing water systems.
Dr. Chang also questioned the increase in the cost of water supplied to mainly farmers, by the Rapid Response Units (RRU). "This increase has dealt another fatal blow to the many small farmers who rely heavily on the irrigation water provided by the programme," he said.
CHALLENGES AHEAD
But Donald Buchanan, Minis-ter of Water and Housing, at the announcement of the rate increase earlier this month, argued that "even with cost-cutting measures implemented, we (the NWC) will be challenged to maintain the current level of service at the existing rates and charges." He pointed out that the RRU's rates have not changed since its inception five years ago.
Effective March 1, the rate for a gallon of trucked water will be increased by 25 per cent, moving to $1.25. The rate for irrigation water will be increased from $0.50 to $1, reflecting a 50 per cent adjustment. And the price to fill a 650 gallon water tank will move from $5,500 to $6,500.
Mr. Chang said the farmers are already finding the cost prohibitive. He charged that "the increase is another manifestation of the Government's inability to keep house due to the strangling debt burden."
