Public Utilities Minister Emmanuel George told the Senate Monday the utility doesn't make a profit, noting that the state had to provide WASA with a subsidy of $1.8 billion this year.
He made the point as he piloted an order to increase water rates for companies operating at the Point Lisas Industrial Estate from $4.50 per cubic metre to $8.50. The change means those companies will have to pay a total of $12 per cubic metre, which includes an additional $3.50 commercial rate to be paid to WASA.
George explained that the current $4 rate has existed since 1998 during which time WASA’s costs rose from $1.6 billion in 2006 to $2.14 billion in 2008.
He said WASA if the rates aren’t increased, the utility stands to lose $26m this year and $92m in 2010.
The minister said it is unfair for WASA to continue subsidising these profitable companies.
He said money saved by reducing the subsidies will help expand WASA, especially to areas that do not receive water.
George said the companies understand that WASA is operating at a loss and want to have further talks with Government at which time they want to make certain proposals.
He made the point as he piloted an order to increase water rates for companies operating at the Point Lisas Industrial Estate from $4.50 per cubic metre to $8.50. The change means those companies will have to pay a total of $12 per cubic metre, which includes an additional $3.50 commercial rate to be paid to WASA.
George explained that the current $4 rate has existed since 1998 during which time WASA’s costs rose from $1.6 billion in 2006 to $2.14 billion in 2008.
He said WASA if the rates aren’t increased, the utility stands to lose $26m this year and $92m in 2010.
The minister said it is unfair for WASA to continue subsidising these profitable companies.
He said money saved by reducing the subsidies will help expand WASA, especially to areas that do not receive water.
George said the companies understand that WASA is operating at a loss and want to have further talks with Government at which time they want to make certain proposals.
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