PAM breaks agreement on water price hike: Council
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)