Hayles urges OUR to reject NWC’s 51 per cent rate hike request

Opposition Spokesperson on Water, Ian Hayles, is calling on the Office of Utilities Regulation (OUR) to reject the National Water Commission’s (NWC) application for a 51 per cent tariff increase, arguing that the utility must first address longstanding management and operational shortcomings.

The call follows discussions before Parliament’s Public Accounts Committee (PAC), which is reviewing an Auditor General’s performance audit of the NWC. The audit raised concerns about the utility’s planning and project execution, finding that 17 priority projects valued at $394 billion lacked supporting master plans and that there was no documented framework for prioritising capital projects.

The report also noted that the NWC’s payables climbed from $10.6 billion in the 2016/17 financial year to $33.2 billion in 2025/26. In addition, capital budgets have been consistently under-spent since 2019/20, while non-revenue water and energy-efficiency targets were repeatedly missed. The audit further highlighted the failure to submit four years of audited financial statements to Parliament.

“The NWC says this increase will fund its investment plan. The Auditor General says there is no master plan and no documented way of choosing projects,” Hayles said. “Why should the people of Jamaica pay for the mismanagement of their water?”

Hayles said the findings reinforce concerns he raised during his Sectoral Debate presentation in June, when he called for a national water master plan and a transparent process for selecting and implementing projects.

He also pointed to findings by the Independent Fiscal Commission showing $3.3 billion in unspent NWC capital allocations and questioned the utility’s management of resources at a time when customers continue to face water shortages. According to Hayles, only one of 13 energy-efficiency projects identified by the utility had been completed, despite the NWC spending an estimated $1 billion monthly on electricity.

Hayles said the Opposition is recommending that the tariff application be rejected until the NWC submits its outstanding audited accounts and presents a credible plan to reduce water losses. He also urged Jamaicans to participate in the OUR’s public consultation process on the proposed increase.