XN000022-1993-06-01 — Page 2

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INCREASE IN WATER RATES APPROVED

*

THE GOVERNOR IN COUNCIL TODAY (TUESDAY)

IN WATER RATES.

TUESDAY, JUNE 1, 1993

APPROVED AN INCREASE

THE INCREASE, WHICH WAS MADE AFTER AN ANNUAL REVIEW OF WATER CHARGES, WILL COME INTO EFFECT ON AUGUST 1 THIS YEAR.

A SPOKESMAN FOR THE WATER AUTHORITY SAID THE RATES FOR DOMESTIC CONSUMERS WOULD INCREASE BY 8.7 PER CENT AND THOSE FOR NON-DOMESTIC CONSUMERS BY 12.2 PER CENT,

"THE REVISION IS AIMED AT REFLECTING MORE ACCURATELY THE HIGHER OPERATING COSTS MAINLY DUE TO INFLATION AND THE COSTS OF EXPANSION OF THE SUPPLY SYSTEMS IN THE NEXT FEW YEARS ΤΟ COPE WITH FUTURE DEMAND," THE SPOKESMAN SAID.

UNDER THE NEW RATES, 17 PER CENT OF THE 1.7 MILLION DOMESTIC CONSUMERS WILL CONTINUE TO ENJOY FREE SUPPLY OF WATER, WHILE 64 PER CENT WILL PAY LESS THAN $2 MORE PER WEEK.

THE REMAINING 19 PER CENT WILL PAY $2 OR MORE PER WEEK. OF THIS GROUP, ABOUT FOUR PER CENT WILL HAVE TO PAY MORE THAN $5 EXTRA PER WEEK.

A COMPARISON OF THE WATER CHARGES FOR DOMESTIC CONSUMERS THE OLD AND NEW TARIFFS IS SHOWN BELOW:

UNDER

CONSUMPTION IN UNITS

CHARGES PER FOUR-MONTH PERIOD

1 UNIT = 1 CUBIC METRE

PRESENT ($)

NEW

13 AND BELOW

14

-

46

47

66

67

120

OVER 120

FREE

FREE

0

-

114.56

3.89 128.37

118.14

219.65

J

134.40 248.97

225.20 - 630.85

630.85 PLUS $7.78 PER UNIT OVER

257.43 705.81

—

705.81 PLUS $8.46 PER UNIT OVER

THE SPOKESMAN POINTED OUT THAT THE PRESENT CHARGES FOR NON-DOMESTIC CONSUMERS WERE BELOW PRODUCTION COSTS.

CONSUMERS

THE HIGHER INCREASE IN THE RATE FOR THIS CATEGORY OF IN COMPARISON WITH THE RATE FOR DOMESTIC CONSUMERS, [S AIMED AT BRINGING THE CHARGES CLOSER TO THE PRODUCTION COSTS, HE SAID.

IS

AS

"THE 12.2 PER CENT INCREASE FOR NON-DOMESTIC SUPPLIES UNLIKELY TO HAVE ANY SIGNIFICANT IMPACT ON BUSINESS OPERATIONS WATER CHARGES REPRESENT ONLY A SMALL PART OF THE OPERATING COSTS OF MOST FIRMS, THE SPOKESMAN NOTED.

"

/HE EXPLAINED;