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Momodou
Denmark
11728 Posts |
 Posted - 14 Feb 2011 : 14:31:54
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NAWEC seeks 31% increment in electricity tariff
By Sainey M.K. Marenah & Malamin Conteh
Monday, February 14, 2011
The National Water and Electricity Company (NAWEC) is currently awaiting a decision from the Public Utilities Regulatory Authority (PURA) regarding an application to increase electricity tariffs to 31% and cost recovery for water and sewerage services in Banjul.
The move, according to justifications made available to PURA by NAWEC, is based on the fact that the company is currently under extreme financial difficulties due to the cost of inputs, the increasing cost of energy purchased from the IPP and high operational costs.
The company’s revenue base is also said to be insufficient to sustain NAWEC's operational obligations, resulting in short term borrowing from commercial banks.
As part of its consultation with the general public, PURA and NAWEC over the weekend organized a day's public hearing with a view to ensure effective review of NAWEC's application to ensure that all relevant comments are taken on board when PURA is making a decision on the application by NAWEC.
The forum, held at the Father Farrell Hall at Westfield, gave members of the public the opportunity to listen to first-hand information from NAWEC pertaining reasons for applying for a tariff increase.
Speaking at the public hearing, Maleh Saine, officer in charge of PURA, said the meeting sought to obtain public comments on the proposed tariff increase by NAWEC.
"As the public is directly affected by any decision taken on this matter, the law, that is to say the PURA Act 2005, requires that a process underpinned by an open and transparent consultation process is followed when setting rates or tariffs," he told the well-attended meeting.
The consultation, he added, will be conducted in the form of a public hearing so as to ensure effective review of NAWCE's application in order to ensure that all relevant comments are taken on board when PURA is making a decision on this NAWCE application.
According to him, whenever a decision is reached by PURA, it will be published in various media to inform the general public, adding that the agreed tariff will then be implemented commencing at a date that will be communicated accordingly.
Momodou Jallow, the managing director of NAWEC, said the importance of such public gathering cannot be overemphasized given the demand on NAWEC from its customers for water, electricity, sewage services.
"We want to make NAWEC the best utility in the sub-region, but we are facing a serious financial problem which threatens the viability of NAWEC. For the past three years, we have been charging low tariffs, which are not sustainable because of the increase in the price of fuel at the international market," the head of NAWEC told the meeting.
He called on NAWEC customers to fulfill their part of the contract by paying bills on time, adding that NAWEC’s aim is to provide 24-hour electricity supply countrywide by the end of this year.
Also speaking at the meeting was Dodou Bammy Jagne, chairman of the Board of Commissioners of PURA.
He said PURA, NAWEC and the Government of The Gambia would like to hear the views of the general public, noting that it was through this that they will be able to arrive at a proper decision.
Source: The Point
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A clear conscience fears no accusation - proverb from Sierra Leone |
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toubab1020
12311 Posts |
Posted - 14 Feb 2011 : 18:21:27
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The writing has been on the wall for ages,usual problem NO MONEY,customers NO MONEY ETC! I expect the Chinese importers of candles are rubbing their hands and ordering more.
"extreme financial difficulties due to the cost of inputs, the increasing cost of energy purchased from the IPP and high operational costs.
The company’s revenue base is also said to be insufficient to sustain NAWEC's operational obligations, resulting in short term borrowing from commercial banks."
As NAWEC has to buy fuel oil for the generators and they want to maintain their business I hope they pay their suppliers,who probably supply petrol and diesel as well to the Gambia,if this is not managed very carefully fuel prices at the pumps MAY skyrocket or even worse become unobtainable,result food shortages transport difficulties.BIG problem could ensue from a knock on effect of NAWEC's lack of money.!
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"Simple is good" & I strongly dislike politics. You cannot defend the indefensible.
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Momodou
Denmark
11728 Posts |
Posted - 14 Feb 2011 : 19:05:41
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98 PERCENT PUBLIC DISAPPROVAL OF NAWEC´S TARIF PROPOSAL
By Publisher on 14-02-11
The Gambian Public residing in the Greater Banjul Area, on Saturday 12th February 2011 disapproved of the National Electricity and Water Company´s (NAWEC) proposal to increase its tariff on Electricity, Water and Sewage services in a public hearing organized by the Public Utilities Regulatory Authority (PURA ) at the Father Farrel Memorial Hall at Westfield.
During the opening of the public hearing, the Chairman of the Board of Directors of the Public Utilities Regulatory Authority (PURA) Mr Dodou Bammy Jagne told the public that PURA is committed to fulfill its mandate as clearly spelt out by the Act establishing it, thus the need for such gathering. He noted that this is the first public hearing he has ever attended and therefore called on the attendees to listen attentively and participate effectively. He concluded by telling the public that this is their right and that right goes with responsibility.
On his part, the Officer in Charge of the Public Utilities Regulatory Authority (PURA) Mr Maleh Saine told the public that his institution received a request from NAWEC on the 27th of December 2010 for an initial tariff increase of about 31% for Electricity, and cost recovery for water and Sewage Services. Mr Saine noted that from the receipt of the application, the Public Utilities Regulatory Authority (PURA) has embarked on consultations with all the stakeholders including the Central Government, Local Authorities and industries.
He noted that the application of NAWEC, the comments from those stakeholders as well as the comments from this public hearing, are going to be the key issues to be considered in forming a decision for the determination on the tariff increase application of NAWEC.
Mr Saine asserted that on certain issues such as this application for tariff increase, it is important to conduct a constructive public hearing. He said a public hearing is an opportunity to take on board the concerns of affected and interested citizens through an open and transparent process.
He concluded by calling on the public to listen attentively to NAWEC as they present their justification of tariff increase.
On their part, NAWEC that has the burden of proof , used the following supporting evidence to justify their application for tariff increase.
According to NAWEC Finance Director, the company is currently under extreme financial difficulties due to:
1. Its ever increasing cost of inputs (both light and heavy fuel and lubricants)
2. Increasing cost of energy purchased from the IPP (Independent Power Providers)
3. High operational cost (Labour and maintenance costs)
4. The revenue base not able to sustain NAWEC’s operational obligations resulting to short term borrowing from commercial Banks at exorbitant cost.
When the Moderator Mr Peter Gomez opened the floor for the public to express their concerns regarding the NAWEC tariff increase proposal, 98 percent of the people who attended the public hearing expressed their disapproval the application.
According to them NAWEC is charging them enough already and that the people are encountering economic difficulties and any increase in tariff, will automatically add to their suffering. They asked NAWEC to conduct staff auditing, redouble their effort to collect their arrears, maintenance their water pipes and Electricity meters to avoid waste of resources for the company. Those against the proposal, told NAWEC to audit their assets and dispose the ones that they do not need and also to look for alternative sources of energy to free the company from the high cost of fuel.
The three out of 200 in attendance who supported the NAWEC proposal said NAWEC should increase their tariff because technology is now advance but that the increase should be reasonable.
Source: Foroyaa |
A clear conscience fears no accusation - proverb from Sierra Leone |
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toubab1020
12311 Posts |
Posted - 14 Feb 2011 : 22:33:27
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What should we do now then  ? .........The PEOPLE have spoken 
I draw your attention to the penultimate and ultimate paragraphs of the above report, copied below :
"When the Moderator Mr Peter Gomez opened the floor for the public to express their concerns regarding the NAWEC tariff increase proposal, 98 percent of the people who attended the public hearing expressed their disapproval the application.
According to them NAWEC is charging them enough already and that the people are encountering economic difficulties and any increase in tariff, will automatically add to their suffering. They asked NAWEC to conduct staff auditing, redouble their effort to collect their arrears, maintenance their water pipes and Electricity meters to avoid waste of resources for the company. Those against the proposal, told NAWEC to audit their assets and dispose the ones that they do not need and also to look for alternative sources of energy to free the company from the high cost of fuel.
The three out of 200 in attendance who supported the NAWEC proposal said NAWEC should increase their tariff because technology is now advance but that the increase should be reasonable." |
"Simple is good" & I strongly dislike politics. You cannot defend the indefensible.
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Edited by - toubab1020 on 14 Feb 2011 22:34:26 |
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