Councillors demand delay to tap water price hike

JAKARTA (JP): The City Council Commission C for economic affairs has recommended a delay to a proposed increase in tap water rates until the end of 2001 for the bottom three consumer groups.

Secretary of Commission C for Economic Affairs Aziz Boeang said on Thursday the postponement was necessary given the impact of the economic crisis on consumers, which remains unabated.

The lowest categories comprise charity and worship facilities, "very simple" and "simple" households.

Governor Sutiyoso proposed last month a tap water rate increase of between 6 percent and 43 percent, saying it was necessary to make up the deficit water companies were suffering as a result of rising operational costs.

Aziz indicated the commission basically agreed to a hike, but objected to the amount of the proposed percentage increase.

"We are working out changes to the proposed percentage increase, and plan to invite the independent team on water tariffs for more discussions on the matter," Aziz said.

An independent team has been formed by the city tap water company PAM Jaya and its two foreign partners Palyja and TPJ to provide them with data and to study the appropriate increase in rates.

Aziz said many councillors had questioned the way the water tap companies came up with the new rates.

The new tap water rates proposal, applied in cross-subsidies, divides water consumers into seven groups. The first four groups, consisting of charity and worship facilities, "very simple up to medium" households and apartments, will be subject to between 6.67 percent and 30.32 percent increase.

Aziz said among the questions raised were the groupings of water consumers, the control mechanism for water leakage and the condition of pipes used in the city's water network.

"We notice that the new prices have been proposed hastily, due to the lack of time for the independent team to verify the reasons for the hike," Aziz added.

In their proposal, the tap water companies divide consumers into three groups based on their monthly consumption of water: up to 10 cubic meters, 10 to 20 cubic meters and above 20 cubic meters.

The companies also assume the minimum monthly expenditure of a consumer is Rp 600,000, four percent of which is allocated for payment of their water bill. (07)