The Water and Sewerage Authority (WASA) is aiming to begin metering its customers in 2017. In introducing the initiative on a phased-basis, the authority’s chairman, Romney Thomas, believes this can help generate funds for the cash-strapped water company.
The news comes two months after Public Utilities Minister Ancil Antoine, at the swearing-in ceremony of the Regulated Industries Commission (RIC), called for higher WASA and T&TEC rates for its customers in a bid repay an Inter-American Development Bank (IDB) loan.
Insisting that consumers were paying low rates, Antoine said the RIC board will make recommendations to the Government as to the way forward in terms of new rates or any new tariffs. Antoine said WASA would have to implement some form of metering so consumers would use water intelligently.
As far back as the 1970’s there were proposals by the Public Utilities Commission (now the RIC) for metering to be put in place. In going forward, Thomas said one of the things WASA has proposed since December was installing meters for its customers.
To get the project off the ground, Thomas said WASA first has to seek Cabinet’s approval. If Cabinet gives the all-clear, Thomas said WASA could begin installing meters in 2017. WASA has 402,748 residential customers, while there are 8,910 commercial customers.
The last time WASA and T&TEC increased its rates was 1993 and 2006 respectively. Faced with cash-flow problems, Thomas said WASA would have to secure a loan from the IDB to start the project on a phased basis, beginning in one community and then moving to another.
“One of the bugbears of getting this project off the ground has been the high cost. Getting the meters installed will cost taxpayers approximately $150 million. That was the entire cost. Obviously we would have to go out for tender for something like this. Internally that is the figure that we were looking at,” Thomas said.
Some of WASA’s commercial customers are already metered.
“It’s the residential customers we would have to target. We have to work out the dynamics of the new system.
This is a crucial area of demand management. It is something that has been spoken about for years. We have to ensure that more commercial and industrial customers are metered because this is where the bulk of our revenue will come from.” Thomas said.
Of all the meters WASA has been looking at, Romney said its preferred choice was the ultrasonic type which is accurate in measuring water, require little maintenance and have long lifespans. Asked if WASA would subsidise the cost of meters for people who live in squatting settlements and below the poverty line Thomas said “we have not had a discussion in terms of government policy just yet.
“That will have to be worked out with our line minister and our legal people. The fine details of how it is going to be implemented is yet to be determined.”
Soon, Romney said, WASA will come up with an implementation plan to make the metering system a reality.
“We have to start installing meters if we want to control the demand for water. People will become more conscientious on how they use and conserve water.”
Romney said with conservation, WASA’s water supply would improve.
“I suspect that consumption will decrease with the installation of meters.”
WASA also intends to crack down on people who have been stealing water through illegal connections and abstractions, Romney said.
“It’s an offence to obtain water illegally. If I am correct, I think we have a few people in court for that,” he disclosed.
Chairman of the RIC, Dr Hyacinth Guy, said its Board has already got “a good insight into the issue.” Before any increase takes place, Guy said the RIC has to undertake a series of consultations with WASA and other stakeholders before making a final determination on the proposed increase in water tariffs.
Guy said “three or four years ago” the RIC did a full review of T&TEC’s rates, while a partial rate was proposed for WASA. She explained that the final determination will set out the amounts WASA can charge its customers, the level of service it must provide and the efficiency improvements that must be achieved.
Guy said the increase in rates would ensure that T&TEC and WASA are run effectively.
“Once you are covering those costs... showing this is the most efficient way to run these organisations, then that informs the rate. Whether that rate is low or high, it is not for us to say.”
If the rates turn out to be too high, Guy said Government can intervene and make some decisions.
Before new rates are set, Guy said the RIC would have to determine if they should do a quantum leap or increase the rates over time.