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WA announces a significant increase but headlines an insignificant decrease

The following is a press release from Water Authority (WA) – Cayman with the headline act not headlined at all. Please see today’s Editorial on the same subject.

The Water Authority has Announced the Removal of the Minimum Monthly Fee (MMF)

The Water Authority has announced the removal of the minimum monthly fee in conjunction with the introduction of new water and sewerage rates. These and other changes will take effect on 1 November 2012 for Grand Cayman and Cayman Brac customers.

Under the new rate schedule, the minimum charge of $16.04 per month will be removed, thus water customers that experience periods of minimal usage during the year will realize savings under the new scheme.

The two-tiered rate structure for water usage currently in effect will remain. Under the current structure, the first twelve cubic meters (approximately 3,200 US gallons) for Grand Cayman customers is charged at $4.01 per cubic meter (or $15.19 per 1000 gallons) for residential properties. Under the new rate structure, the fee will be $4.38, representing a 9.26% increase of the base water rate. For usage above twelve cubic metres, the rate will also increase 9.26% from $5.10 per cubic metre to $5.57 on the portion of the usage that exceeds twelve cubic metres. Commercial properties will see a similar percentage increase. On Cayman Brac, the base rate adjustment represents a 6.68% increase.

Sewerage and septage rates will see an increase of 10%. Additionally, all sewer and septage bills will now receive an energy adjustment factor charge (EAF) similarly as on the water bills. The EAF is expressed in CI$ per SFU (sewerage fixture unit) and CI$ per 1,000 gallons of septage respectively and covers fluctuations in the cost of electricity used to process the sewage and septage.

Other changes include an automatic annual rate adjustment and increase to statutory fees.

The Water Authority (Amendment Regulations 2012 provides a complete explanation of all changes and can be found at

“The rate adjustment is driven by the need to invest in our water and wastewater infrastructure to ensure their proper and adequate operation in the years to come,” said Dr. Gelia Frederick-van Genderen, Director of the Water Authority. “The last comprehensive rate adjustment took place in 1995, with a minor rate adjustment in mid-2007. The Water Authority is facing increased difficulties with borrowing due to the FFR (Framework for Fiscal Responsibility) Bill. However, even with borrowing, a rate adjustment would still be necessary in order to maintain and expand the water and wastewater infrastructure in accordance with public demand.”

Moving forward, the automatic annual rate adjustment will reflect the changing costs of doing business in the Cayman Islands

Despite the adjustment, water from the Water Authority remains significantly less costly than bottled water. A typical gallon of bottled water purchased at a retail store is $1.25-$1.50 compared to water from the Water Authority at less than $0.02 per gallon. The potable water produced by the Water Authority exceeds World Health Organization guidelines for drinking water quality.

A rate increase may cause concern for residents, however there are things people can do to minimize the impact on their pocket book. The Water Authority continues to encourage customers to take charge of their water consumption and monitor their usage closely to manage and control their expenses. This can be as easy as identifying and fixing leaks without delay, avoiding unnecessary toilet flushing, installing water-saver showerheads and limiting water used for gardening. Customers can monitor their usage by keeping an eye on their water meter. By becoming familiar with the normal readings on the meter, customers can more easily identify abnormally high usage and take immediate steps to remedy any problems. The Authority provides information on meter reading on their website.

 

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