Councillors demand delay to tap water price hike

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)