DOWASCO Implements Water Access Charge After 13 Years Without Tariff Increase
The Dominica Water and Sewerage Company Ltd. (DOWASCO) is implementing a Water Access Charge as of June 1, 2024 as a measure to meet the company’s cash shortfall. The introduction of these new charges follows the approval of the Government of Dominica.
The Water Access Charge is necessary to assist DOWASCO in meeting its operational costs as the company has not had an increase in water and sewerage tariffs for the past 13 years. The last tariff increase was in 2011. Since then, the cost of materials and supplies required for maintenance and capital works has more than doubled. Recognizing this imperative, DOWASCO identified the necessity for a thorough costing and tariff-setting initiative, thus launching the Cost of Services (CoS) and Tariff Study in 2018.
Over the past two decades, the company’s cost structure has evolved, necessitating consideration of future operational resilience following Hurricane Maria in 2017.
In addition, the government of Dominica has paid loans in the amount of $31, 916,188.00 on behalf of the company. The revenue collected from the Water Access Charge will therefore assist DOWASCO in meeting its annual shortfall of approximately $9.9 million largely representing payments of loans, payments to creditors, purchasing pipes and fittings that are in short supply, purchasing supplies for emergency repairs in the event of any disaster as well as other necessary operational expenses to keep the company functioning.
The Water Access Charge is not intended to generate a profit for DOWASCO, however, if there are any changes that may result in a surplus, the excess funds must be placed in a specially designated account managed by DOWASCO and the Government of Dominica and can only be accessed for emergency purposes.
The current tariff structure remains the same and the Water Access Charge will be applied to customers beginning June 1, 2024, as follows:
| Category | Rate | Definition of Commercial Categories |
|---|---|---|
| Domestic | ||
| Metered & Unmetered | $15.00 per month | |
| Commercial | ||
| Large | $800 per month | Revenue of $5,000,000.00 and above |
| Medium | $175 per month | Revenue of $250,000.00 but less than $5,000,000.00 |
| Small | $100 per month | Revenue of less than $250,000.00 |
DOWASCO urges domestic customers with any queries concerning these charges or commercial customers requiring further information to contact DOWASCO at dowasco@dowasco.dm. The customer service department can be reached at the following numbers: 255 2931, 255 2932, 255 2933, 255 2934 or 275 1182/.
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