Maravi

Water utilities propose 18 to 80% tariff raiseBy Chiwoyu Sinyangwe

Water utilities propose 18 to 80% tariff raise
By Chiwoyu Sinyangwe
Sat 23 Oct. 2010, 04:04 CAT

SOME water utilities in the country are proposing to raise water tariffs to between 18 and 80 per cent, a senior official at National Water and Sanitation Council (NWASCO) has disclosed.

NWASCO financial and commercial management inspector Josephine Goma said water utilities were proposing to up water tariffs mostly to recover the cost of providing services.

Goma said recent changes in economic dynamics such as inflation and hiked electricity tariffs prompted water utilities to ask for an increase in water charges.

She mentioned the four water utilities that had applied for water increases as Luapula Water and Sewerage Company, Western Water and Sewerage Company, Eastern Water and Sewerage Company and Mulonga Water and Sewerage Company.
She said Luapula Water and Sewerage Company had proposed the highest tariff increase of 80 per cent.

“This figure might sound very high but in absolute terms it is very small because Luapula Water and Sewerage Company is a new commercial utility,” Goma said. “The point is that they Luapula Water and Sewerage Company are coming from zero, where the tariffs were not economic as they recently took over from local authorities.”

Eastern Water and Sewerage Company is asking for 30 per cent increase, and Western Water and Sewerage Company has proposed to raise tariffs by 27 per cent.
Mulonga Water and Sewerage Company which services Chingola, Mufulira and Chililabombwe has asked for the lowest tariff hike at 18 per cent.

Western Water and Sewerage Company is proposing a 27 per cent hike because they had not effected any tariff change since 2006, and the firm has the lowest tariff in the sector.

“They water utilities are basically asking for these adjustments to sustain the cost coverage rate, their operations and maintenance costs and also the movements in inflations,” she said.

Goma said commercial utilities that had not applied for tariff were operating within the window that had earlier been approved by NWASCO which had not yet expired.
Goma said NWASCO would study the proposals from the commercial utilities before approving and disapproving the proposals by the utilities.

“These are just proposals, [we will analyse them and based on what we will find when we analyse as management then we will pass on our findings to our council board, which then will make the final decision,” said Goma. “So, until that time…and of course we have a model we use when evaluating these submissions.”

Labels: JOSEPHINE GOMA, NWASCO, UTILITIES, WATER

posted by MrK @ 6:58 AM