Executive Summary – The Proposed Increase
On 2016, May 30 the Runaway Bay Water Company Limited (RBWCL) submitted an application to the Office of Utilities Regulation (OUR/Office) seeking a non-objection decision for a forty-five percent (45%) increase in bulk water rate to the National Water Commission (NWC).
In its application, RBWCL argued that at the current price of $34.39 per cubic metres, the company was operating at a loss of approximately $8.53M per annum (loss margin of 30.86%) at its Mount Edgecombe Water Treatment Plant (WTP). RBWCL asserted that if the requested increase were to be approved by the OUR, the company would be in a position to attain an annual profit margin of $4M or 10%. A forty-five percent (45%) increase in the rate would see the price moving from $34.39 to $50 per m3.
