The Regulated Industries Commission (RIC) will make a final determination on the review of water rates by November 2023.
This is according to the Social Sector Investment Programme (SSIP) document, which was laid following Monday’s Budget presentation by Finance Mnister Colm Imbert in the Parliament.
According to the SSIP, the RIC will prepare its draft determination for the Water and Sewerage Authority’s price review upon receipt of a final business plan from WASA in the 1st quarter of fiscal 2023.
Public consultation on the draft will then commence.
The SSIP states that after the public consultations, the RIC’s final determination for WASA’s price review is expected to be completed by November 2023.
With regard to the provision of water, it states that during the fiscal year, refurbishment and upgrade works will be undertaken on the following plants—Caroni Water Treatment Plant, Navet Water Treatment Plant, Guanapo Water Treatment Plant, North Oropouche Water Treatment Plant, Chatham Water Treatment Plant, Hillsborough Water Treatment Plant, and the Hollis Water Treatment Plant.
It said that these works will improve the reliability of service, water quality and supply to over 400,000 persons from several communities, including Mayaro, Cocoyea, Barackpore Princes Town, Tabaquite and Naparima. Guanapo, Arima and environs, Valencia and Trincity.
Meanwhile, Minister of Public Utilities Marvin Gonzales says they will now move ahead with the WASA transformation after the court dismissed the Public Service Association’s action to stop the process on Tuesday.
Speaking during the Future Proof 2022 launch of the T&T Solid Waste Management Company Limited at the Hyatt Regency in Port-of-Spain, Gonzales explained that the court agreed with Government’s position that there is need for a restructuring.
“We certainly cannot continue like that. It is a mandate that was given to me when I became minister in 2020,” Gonzales said.
“The PSA filed the application in court and they asked for an injunction to stop the transformation process. The court dismissed the injunction sometime in March this year. The substantive matter, which is the complaint by the PSA that the WASA was not meeting and treating with them, not collaborating on the transformation, that substantive matter was dismissed yesterday (Tuesday).
“It simply means that the Government now has the full go-ahead to move forward with the transformation of the authority without any potential legal impediment before the Industrial Court, so we are moving full pace ahead.”
He confirmed the transformation plan was completed about one month ago and passed to the board, which is at the stage of implementing the various stages of the transformation.
Addressing the pending increase of water and electricity rates, Gonzales made it clear this was determined by the RIC.
He said the T&T Electricity Commission (TTEC) purchases gas from the National Gas Company below market prices at around a dollar and sixty cents per MMBTU.
“The price of gas on the market is somewhere in the region of eight dollars and it simply means that NGC is selling gas to T&TEC at considerable losses to the NGC to the benefit of the people of T&T and is costing the Government about 700 million dollars to buffer the impact of rising gas prices on the price of electricity,” he said.
“This is a very serious matter because if TTEC were to pay NGC the eight dollars and that price has to be passed on to the consumers, you’re talking about the potential for electricity rates to be doubled or tripled and this is a very very serious matter because it can impact ordinary people in a significant way.”
Gonzales assured that the Government has decided to allow the RIC, the body responsible for reviewing water and electricity rates, to do its work.
“It is not the Government of T&T and I would want to make it abundantly clear because I would have seen circulating on social media on the day of the Budget that the Government increased electricity and water rates by ten per cent but nothing could be further from the truth because the Government does not have the power to set the rates for water and electricity in T&T.”
He said the RIC has been looking at the rates for electricity and TTEC had submitted the requisite documents to the body for the review process. He said the public is not going to be left out of this process.
“Part of the process is public consultation by the RIC, so it is not going to be done in the dark. When the RIC completes its process, they will recommend to the Government what is an appropriate price for water and electricity in T&T.”
He assured the Government will then decide what kind of protection it will provide for the vulnerable citizens of T&T.
“The Government is already on record saying that we will have a subsidy structure that is more targeted towards the more vulnerable people in society, whilst those who can afford to pay close to market rate for water and electricity, they will be allowed to pay the market rate.
“However, the Government will be utilising a cash card system to support vulnerable families and vulnerable citizens in T&T with respect to the potential for any increase cost in water and electricity as may be recommended by the RIC.”