New water charges introduced in Dominica

Starting June 1, 2024, residents and businesses in Dominica will face a new water guarantee charge. This move, announced by the Dominica Water and Sewerage Company Limited (DOWASCO), comes as the company addresses ongoing financial challenges. 

The charges vary by consumer type, with domestic customers paying $15 per month, small businesses $100 per month, medium commercial businesses $175 per month, and large commercial businesses paying $800 per month. 

Owned entirely by the Government of Dominica, DOWASCO’s financial health is crucial for the island’s water supply continuity.

Struggling against natural and economic hardships

DOWASCO’s financial troubles have been exacerbated by a series of natural disasters and global events. 

Tropical storms and hurricanes in recent years, including Tropical Storm Erika and Hurricane Maria, inflicted severe damage on the nation’s water infrastructure, necessitating costly repairs and equipment replacements. 

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The subsequent global COVID-19 pandemic further strained financial resources, creating a scenario where monthly and annual revenues fell short of expenditures.

Rate increase

Louis Patrick Hill, Chairman of the Board at DOWASCO, emphasized that the rate increase was not a decision made lightly but a necessary measure after years of budget shortfalls. 

The company’s low supply stock poses a significant risk, especially with the potential of upcoming hurricanes. 

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If not addressed, this could lead to critical delays in repairs during emergencies, affecting water supply reliability.

Employee and operational needs

In addition to infrastructure costs, the company faces pressures to increase employee salaries and provide essential resources for effective operation. 

This includes uniforms and other necessities that ensure employees can perform their duties efficiently. 

The rate increase aims to cover these operational costs to avoid service disruptions and employee dissatisfaction.

Financial strategy and future projections

Hill reassured customers that the aim is not to generate profit but to cover operational costs. 

Any surplus revenue, according to Hill, might be directed into an emergency fund or used for further infrastructure investments, as mandated by the Prime Minister. 

This strategic financial planning is designed to ensure DOWASCO can continue to provide essential services without compromising on quality or reliability.

Maintaining stability in water services

Bernard Etinoffe, General Manager of DOWASCO, noted that there had been no rate adjustments for over a decade, despite the escalating challenges. 

The newly implemented water guarantee charge will stabilize the financial foundation of the company, ensuring that it can manage its loans and maintain critical relationships with local, regional, and international suppliers. 

Additionally, the funds will allow for the insurance of major, currently uninsured assets.

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