Utility company applies to increase water rates

Last week we reported on figures from the Statistical Institute which showed a contraction of the G.D.P. by two point two percent and that the economic downturn was hitting most sectors. Tonight there is more bad news to add to the woes of consumers. Word from the Public Utilities Commission is that the Belize Water Services has made an application to increase water rates by eight percent. According to the P.U.C., the B.W.S. is claiming that inflation has put the company in an adverse financial position. B.W.S. says there has been no rate adjustment since 2005 and furthermore that that the increasing cost of goods and services has reduced its cash flow rendering the company unable to carry on maintenance and expansion. B.W.S. says that its actual revenue and costs from 2004 to 2009 compared are way below the business model that was projected by the P.U.C. B.W.S. also claims it cannot “generate enough revenue from operations to meet its investment obligations.” A decision on the proposed increase, according to the P.U.C., is expected by June nineteenth. B.W.S. did not wish to comment on the projected increases.