GWI would not need to increase tariff if customers pay up

Finance Director of the Guyana Water Incorporated (GWI), Jaigopaul Ram has admitted that the entity would not need to increase its rates if all customers in its database pay their bills.

GWI is currently before the Public Utilities Commission seeking permission to increase its water rates.

However, the entity’s Finance Director told the Public Accounts Committee (PAC) on Monday, following intense questioning from Chairman Irfaan Ali, that this request would not be necessary if GWI was successful in its revenue collection strategy.

Ali reasoned: “so it’s about 10% of your cost you can’t finance. But if you were to collect all your revenue from your customers at the existing rate, you’d be able to finance your cost so there is no need for an increase in tariff.”

The Finance Director responded in the affirmative, saying “yes sir, you’re correct.”

PAC Member Jermaine Figueria asked the Finance Director to explain what is preventing the entity from collecting it revenues to which he explained that there is a high level of delinquency in Guyana.

The Finance Director explained that in some cases when persons are disconnected for failure to make payments, they find a way to reconnect themselves.

GWI’s Managing Director Dr Richard Van West Charles had announced last year that the increase was necessary to purchase more generators, pumps and other equipment needed to improve its services.

The Finance Director explained that about 45% of GWI’s overall operation is financed through government subventions.

He said the total transfer of monies from central government to GWI is approximately $1.8B annually for electricity charges alone.

The Finance Director said he cannot recall the amounts GWI receives from the Government for other purposes and undertook to provide this information to the PAC on Tuesday, February 20, 2018.