The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Grand Bahama's water supplier yesterday pledged that 40 percent of its customer base will not see any price hikes from an adjusted tariff structure due to take effect on May 1 if approved by regulators.

Grand Bahama Utility Company, in a statement, said a further 47 percent of clients - who consume between 2,001 and 10,000 gallons monthly - will only see an $8 per month tariff increase as the company bids to recover some of its $15m Hurricane Dorian losses and finance future capital works and maintenance.

Its projections thus suggest that 87 percent of customers will either experience no tariff rise or a relatively minimal one of $8 per month. Those consuming between 10,001 and 20,000 gallons per month will see their bills rise by around $20.73, representing 8 percent of the customer base, while users of more than 20,000 gallons - chiefly hotels and Freeport's large industrial companies - will see their tariffs jump by $125.74 per month.

Philcher Grant-Adderley, GB Utility's chief operating officer, said in a statement: “There is no denying that Dorian had a long-lasting impact, not only on our infrastructure but, most critically, on our freshwater lens. Our biggest wellfield, W6, was inundated with over 20 feet of seawater for three days and the consequences to the fresh water supply were devastating. In total, GB Utility has suffered over $15m in losses as a result of Hurricane Dorian recovery efforts.

"We added 75 new wells and were able to restore potability to 70 percent of the island by July 2020. After comprehensive hydrological and geotechnical surveys with local teams, the international scientific community and NGOs, it was determined that the rate of recovery of the W6 aquifer would most likely not return to potable standard in this generation.

"We made the decision to invest in a $5m, three million gallon per day mobile reverse osmosis system that enabled us to return full potability to the Island in December 2021.” Mrs Grant-Adderley added said the reverse osmosis system has added $2.5m to the utility’s annual operating costs from its commissioning in 2021.

That, coupled with the approximately $2m in uninsurable losses associated with Hurricane Dorian, including over $500,000 in costs to operate the free water depots for residents and 25 percent discounts given to residents for water usage, has taken a significant financial toll on GB Utility.

“It is never a decision that a company takes lightly when discussing possible rate adjustments for customers”, said Mrs Grant-Adderley. “We know that it is not an easy message to deliver or to hear. That is why, despite the incredible financial loss to the utility, we have absorbed these additional costs and deferred this rate adjustment application for as long as we could.

"However, to continue to do so would not only be irresponsible but makes it impossible for us to make the additional capital investments we need to restore island pressure and maintain potability." She added that as part of the rate adjustment, GB Utility has budgeted more than $6.5m for capital improvement plans. This includes construction of an additional 1.5m gallon a day mobile reverse osmosis system, which will increase potable water capacity.

It will also further improve water quality, and address the lower pressure being experienced by residents because of the diminished freshwater lens. Olethea Gardiner-Miller, GB Utility's wellfield officer, said: “Customers control their consumption and that’s one of the most important takeaways from the utility.

"Our rate proposal addresses key components and consumer behaviours we want to encourage. The first being to encourage environmentally-conscious customers, hence no rate increase for the lower usage customers, about 40 percent of our base. The second being that Hurricane Dorian has significantly damaged our freshwater lens and we must learn the new normal of consuming less or we run the risk of destroying what’s left of the aquifer for us and future generations.”

The Grand Bahama Port Authority (GBPA), GB Utility's regulator, said in a statement: "In keeping with its regulatory governance, GBPA must ensure efficient, cost-effective and reliable operations of the water utility. As the island’s water utility provider, GB Utility shall work under an agreed set of standards of service framework agreement to ensure it acts in the best interests of customers.

"GBPA will provide access to the rate adjustment proposal and a feedback mechanism for customers on our website. As regulator, the GBPA will ensure a fair and transparent review process while it balances the potential impact to customer bills with the need to have a healthy utility that meets its obligations to provide customers with the highest quality product and service.

"GBPA will thoroughly review the application in detail and provide a decision to GB Utility no later than May 1, 2023. We understand fully the importance of ensuring that this island has access to a consistent and quality supply of potable water that meets World Health Organisation (WHO) guidelines," it continued.

"We are cognisant of the critical role of water in our everyday life and future development. We act in accordance with best practices and industry standards to balance the needs of our customers, protect our natural resources and ensure we have a sustainable and storm resilient utility."