JHTA raises concerns about impact of proposed NWC rate hike on tourism sector

The Jamaica Hotel and Tourist Association (JHTA) is raising concerns about the impact of a rate hike by the National Water Commission (NWC) on the tourism sector.

The NWC on Tuesday submitted an application to the Office of Utilities Regulation seeking a 51 per cent increase.

Acting NWC President Kevin Kerr told Parliament's Public Accounts Committee (PAC) on Tuesday that the utility's investment programme was tied to the tariff application and warned that failure to secure the increase would force a revision of its investment plans.

The NWC has cited rising operational expenses, particularly electricity costs, declining revenue collection and the need to finance critical infrastructure improvements as justification for the proposed increase.

The utility continues to struggle with non-revenue water losses estimated at 70 to 73 per cent of production, while its financial obligations have mounted significantly.

On Wednesday, the JHTA questioned the implications of a rate hike for hotels and attractions.

"A 51 per cent increase is significant, and at this stage there are more questions than answers," the JHTA said, noting that different customer categories attract varying rates.

"We need to understand how the proposed increase would apply across those classes, including to hotels and attractions, which are among the commission's larger commercial users," the association stated.

While acknowledging the need to upgrade Jamaica's water infrastructure and place the NWC on a sustainable financial footing, the JHTA said consumers must be told what improvements they can expect in return.

"We are also keen to understand what improvements in service reliability, water quality and system losses customers can expect in return, and over what timeframe," it said.

The association is seeking meaningful consultation before any decision is made on the application.

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