PAM breaks agreement on water price hike: Council

JAKARTA (JP): City councilors have called on the city-owned PAM Jaya water company to cancel the application of the new rate for water at public hydrants since what was announced by the company regarding a raise in water prices runs counter to the one approved by the council.

"As far as water at public hydrants is concerned, we ask the firm to cancel the realization of the new rate," Helmy AR Syihab, chairman of the City Council's commission C on finance, said yesterday.

He was speaking to reporters in the company of Fauzie Ibrahim, the commission's secretary, and Rusdi Saleh, a member of the commission.

Helmy said based on to the agreement between PAM and the City Council, public hydrants are categorized as "social facilities" together with boarding houses, social bodies, orphanages and places of worship, and will be charged Rp 390 (18 US cents) per cubic meter.

However, the company announced Wednesday that public hydrants fall into the "special" category, and will carry a charge of Rp 780 per cubic meter.

"They have broken the agreement. We will soon hold a hearing with them on the matter," said Helmy.

PAM's management said it was raising water prices up to 40 percent beginning this month. Consumers pay the bill for June in July.

However the company in fact raised prices up to 200 percent as far as public hydrants are concerned.

According to records at the company, there are 2,282 public hydrants across the city, mostly located in slum areas where the PAM's pipe network has yet to be installed.

The public hydrants are operated by private firms, which sell the water to water peddlers. The peddlers in turn sell it at an exorbitant price to consumers who are mostly poor.

It is estimated that each public hydrant serves 100 families.

At the old price of Rp 250 per cubic meter, each household spent up to Rp 2,500 per day on water. With the new price, they are expected to be forced to pay three times as much. (jsk)