Georgetown: Guyana Water Incorporated (GWI) is seeking a wave of changes to the current tariff structure, including asking customers to pay a fixed charge.
The proposed tariff changes are slated for discussion when the Public Utilities Commission hosts a public forum tomorrow.
The changes are proposed to help GWI meet its own bills. The last amendment to the tariff structure was in 2005.
The utility claims that even if it collects all of its revenue, it still would not be able to meet its cost of operation.
In a proposal to the PUC, which has to approved the new rate structure, GWI stated that it has become a staple on most tariff for utilities around the world to have a fixed charge built in, given the dramatic fluctuations in the input prices and the need for GWI to maintain and replace the huge amount of fixed assets used in the supply of service to customers.
If GWI gets its way, under the system of a Fixed Charge, metered “domestic” customers will no longer be billed on the compulsory minimum consumption of 10 (15 for Non- Domestic) cubic metres of water per month but rather only on the amount they utilize.
The water authority proposed that in the event of no consumption, the customer will only be billed the Fixed Charge. This would not be applicable in cases where the meter is not working, in such a case the company reserves the right to bill the customer on their average consumption and in the absence of a personal history to bill the customer on the unmetered rate for their category of consumption, the utility stated.
According to the proposal a fixed charge of $200 per month will be applied to each customer regardless of whether they receive treated or untreated water. GWI’s rationale is that the fixed charge is not intended to cover fully any component of GWI’s costs but rather is a mere contribution
GWI claims that customers are unaware of the way in which a charge is built up and often do not appreciate or understand the costs involved in providing water supply.
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