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Runaway Bay Water Company Limited (RBWCL) Water and Sewerage Rates Determination Notice

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Runaway Bay Water Company Limited (RBWCL) Water and Sewerage Rates Determination Notice

Executive Summary

  1. Runaway Bay Water Company Limited (RBWC) was incorporated on 1968 January, 17 and is a wholly owned subsidiary of the Urban Development Corporation (UDC). The company is involved in the wholesale water market and the retail water and sewerage market.
  2. With respect to the wholesale market, the RBWC supplies the National Water Commission (NWC) with bulk water based on a 2008 Water Purchase Contract between the parties. The bulk water supplied to NWC is produced at its Mount Edgecombe water treatment plant in St. Ann.
  3. At the retail side of the business, RBWC currently supplies potable water service in the Cardiff Hall area of Runaway Bay, St Ann and potable water and sewerage services to Caymanas Country Club Estate, in St. Catherine.
  4. On 2020 July 01, RBWC submitted a Tariff Application to the Office of Utilities Regulation (OUR) seeking an increase in its water and sewerage rates. In its Application the company argued that the proposed increase is necessary to finance maintenance works and upgrade existing facilities.
  5. The OUR’s preliminary review of the application revealed that the Application was deficient and would not have allowed the OUR to arrive at an informed decision in its tariff determination. Consequently, the OUR requested additional information from RBWC in  support of its application. The additional information was received on 2020 October 9.
  6. RBWC’s request is for a rate increase equivalent to that which was approved by the Office for the NWC in the 2019-2021 Interim Tariff Determination Notice, document number 2019/WAS/007/DET.003. The Office approved an average of 16.6% increase for the typical NWC customer with both water and sewerage service

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