BWS Full Tariff Review Press Release

Posted: 03 Oct 2009 in the Corporate News Category

March 23, 2007

Belize City, Belize. October 02, 2009:
BWS submits Full Tariff Review Proceedings (FTRP) application

On October 1, 2009, Belize Water Services Limited (BWS) submitted its Full Five-Year Business Plan (FFBP)( BWS Business Review Reprt 2010-2015)report for the period April 1, 2010 through to March 31, 2015 to the national regulator, the Public Utilities Commission (PUC) for their review. This submission is in accordance with the provisions of the statutory regulations, which stipulates BWS should submit an FFBP review report to the PUC. This officially commences the proceeding for the company's second Full Tariff Review Proceeding.

Over the last 5½ years, BWS has invested in excess of $30 Million in expanding and refurbishing assets, especially its eleven water supply and distribution systems country-wide, in order to ensure security and continuity of supply. Investments have also included major improvements to some of our treatment plants, storage tanks, pumping stations and water distribution systems. As a result of these investments, the company has been able to improve pressure and supply in all service areas. BWS supplies water to 45,000 customers or approximately 200,000 consumers country-wide - approximately 70% of the population of Belize.

Along with the Public Utilities Commission, we have implemented a Customer Codes of Practice to ensure transparent and fair treatment to you, our customers. We have invested in computer technology to ensure accurate reading and billing and prompt response to customers' requests. In a recent survey of over 2500 customers, BWS received top ranking, from among all the utilities, in quality, continuity, customer service and affordability.

At the same time, we have controlled operating costs despite accumulated inflation of over 17% and major cost surges due to oil prices. BWS has increased its efficiency in every operational area, included reducing water losses from 43.5% in 2004 to 30% in 2009. This level is far better than those in many water systems in even the most developed countries.

We have put great effort into keeping costs down to ensure that your water bill remains affordable. As most of you are aware, the amount you pay for your full month's water consumption is far lower than the other utilities providers and we intend to keep it that way. It is also far lower than is paid in most countries in the region and even in most parts of the U.S.

However, we have now reached a point where the sustainability of the Company is in jeopardy due to economic factors outside of our control. The company just does not earn enough to continue to provide the level of services to our growing nation without some assistance. In the past, we have managed to perform limited infrastructure investments with contributions from the Government and private developers; the Government has also had to make contributions to help the company meet its loan repayments. Unless remedied, this shortfall in cash will make it extremely difficult to maintain the operations. BWS, out of necessity, has therefore submitted a business plan requesting a tariff increase which averages 25% overall, but averages 14% to residential customers. The new tariffs are to be effective 1st April 2010.

The proposed tariffs have been specifically designed to minimise the impact on lower income and lower consumption residential customers. For the 5,000 households (11% of the customer base) who use 500 gallons or less of water monthly, their bill will actually REDUCE by an average of 20%. For an additional 21,500 customers (52%) who use between 500 and 3000 gallons monthly, the average increase would be around $3 per month. Also, recognising the cries from San Pedro where the tariffs are higher than on the mainland, the percentage increase in San Pedro has been kept much lower.

Belize Water Services Ltd. - Delivering water and more...
For more information regarding this or any other BWS Release, please contact
Mr. Haydon Brown at Tel: 222-4757 Ext. 234 or via e-mail at haydon.brown@bwsl.com.bz