XN000022-1995-01-10 — Page 2

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Increase in water charges approved

The Governor-in-Council today (Tuesday) approved an increase in water charges.

The increase, which was made following an annual review of water charges in conjunction with a recent review of the rates of return of Government utilities, will come into effect on February 16 this year.

The last increase in water charges was made one and a half years ago, on August 1, 1993.

A spokesman for the Water Authority said the charges for domestic consumers would increase by seven per cent and those for non-domestic consumers by 10.5 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 to cope with future demand," he noted.

The spokesman pointed out that the increase was much below inflation which was 14 per cent for the same period.

Under the new charges, 16 per cent of the 1.7 million domestic consumers will continue to enjoy free supply of water, while 62 per cent will pay less than $7 more per month.

The remaining 22 per cent will pay $7 or more per month. Of this group, about eight per cent (that is less than two per cent of all consumers) will have to pay more than $20 extra per month.

The spokesman further pointed out that the present charges for non-domestic consumers were below production costs.

The higher increase in the charges for this category of consumers, in comparison with the charges for domestic consumers, is aimed at bringing the non- domestic charges closer to the production costs, he said.

"The 10.5 per cent increase for non-domestic supplies is unlikely to have any significant impact on business operations as water charges represent only a small part of the operating costs of most firms," the spokesman noted.