Water rates issue<\/p>\n
We would like to clarify some points relating to the water
\nrates increase currently being discussed.<\/p>\n
We at Thames PAM Jaya (TPJ) are very aware of our
\nresponsibility to the community of East Jakarta that we serve and
\nare committed to consistently delivering service improvements.<\/p>\n
We specifically understand that rate increases are never
\npopular. However, on this occasion, the rate increase is required
\nto address a shortfall in payment for services already delivered
\nthat has been accumulating for five years and is now estimated at
\nUS$58 million. This shortfall directly inhibits our capacity to
\nmake the investments essential to improving services. This
\nincrease has absolutely no relation to profit, as is so
\nfrequently misperceived.<\/p>\n
It is important to note that the contractual agreement stated
\nthere would be an annual increase to keep rates in line with
\ninflation and pay toward the investment required to upgrade the
\noperation -- a further Rp 800 billion between now and 2007.
\nHowever, we have had only two increases since 1998, compared with
\nthe five to which we were entitled, creating the debt of which we
\nnow seek a resolution.<\/p>\n
The increase is also intended to gradually bring rates into
\nline with costs, which have been severely impacted by inflation
\nsince 1998.<\/p>\n
In the future, TPJ reasonably expects rate increases to be
\nmore consistent and of lower magnitude. We look forward to PAM
\nJaya and the Jakarta administration finalizing this mechanism
\nsoon to enable us to continue the investments required to improve
\nservices to customers.<\/p>\n
Finally, TPJ understands that all customers merit the same
\nlevel of service, no matter what their economic status. This is
\nwhy TPJ continues to support cross-subsidy principles to ensure
\nthat customers at all levels may enjoy clean water at a cost
\naffordable to them. However, please be clear that TPJ does not
\nset rates, this being the responsibility of the regulator, with
\nthe approval of Jakarta City Council. TPJ only implements the
\nrates on the instruction of these parties.<\/p>\n
JOHN TREW
\nPresident Director
\nThames PAM Jaya
\nJakarta<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/water-rates-issue-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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