WASA Yet to Submit Rate Hike to RIC

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By Sue-Ann Wayow

THE Water and Sewerage Authority (WASA) is claiming that it has not yet submitted a final business plan to the Regulated Industries Commission (RIC).

In a media release on Sunday, WASA stated that a document purporting to be the “DRAFT Business Plan for the Price Control Period 2022-2027” was in the possession of non-WASA personnel and was being quoted from and circulated to the media. 

“Perhaps most disconcerting is the claim that this document has been submitted by WASA to the RIC for determination of a rate proposal,” WASA stated.

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The Authority confirmed that it was desirous of a rate increase and has been preparing the required documents for submission to the RIC.

The documents required by the RIC as part of this process include credible recurrent and capital investment plans, expenditure forecasts, and a business plan.

However, to date, WASA has not submitted a draft or final business plan to the RIC and any draft business plan and/or any version was, therefore, an internal WASA document and continued to be a work in progress within WASA, the Authority stated.

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WASA stated, “Approval has not been sought or obtained for the implementation of any of the matters which arise de novo in any version of the DRAFT business plan. To date, WASA has not received the approval for submission to the RIC of any of the documents that must be submitted for the purposes of the rate review exercise, save for the Cost-of-Service Study which is a factual examination of the cost to provide the service against the rates currently being received.”

The Authority stated that all documents being prepared for the purposes of the rate review have been prepared in WASA, by WASA’s staff and all views contained in any draft documents, represent the views of WASA and no other parties including the Ministry of Public Utilites or any government official.

Upon completion of the plan, then WASA will seek the input of the government and the RIC, for the approach that WASA believes is necessary to achieve the aims set out in the business plan. 

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WASA stated, “Until such buy-in is received, the opinions and proposals contained in the DRAFT Business Plan remain the views of WASA and no other parties.”

WASA stated that it has not been provided with a copy of the document purporting to be the DRAFT Business Plan and was therefore unable to verify the content but believes that it is an early iteration of WASA’s price control proposal. 

“In any event, the intended DRAFT proposal has been considerably modified since the date of that version, which therefore does not represent significant and critical elements of WASA’s intended direction,” WASA stated.

If that document was indeed any version of the DRAFT Business Plan being prepared by WASA, it was unfortunate that an internal WASA document was disseminated to the public and those responsible for the confidentiality breach will be identified and subjected to the appropriate disciplinary action, the Authority stated.

While there have already been several government announcements regarding WASA including a major reduction in staff, WASA added that it was no secret that change was coming and the implementation of the changes  were necessary in providing improved level of supply and customer service. 

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