The Utilities Regulatory Authority (The Authority) on 9th October 2024 approved a revised water tariff for Bellevue and Beverley Hills Water System (BBHWS).
The newly issued tariff is a uniform flat consumption rate of 127.87 Vatu per cubic meter (Vatu/m3) to be effective for a 12-month period beginning in October 2024. In addition to the consumption charge, a fixed charge of Vatu 1,210 will also be applied on customer bill. The determined water tariff will be applied across to all customers in the areas of Bellevue and Beverly Hills.
Prior to the tariff review, BBHWS had been charging two different consumption rates. A 103 Vatu/m3 rate to Bellevue water customers and a rate of 120 Vatu/m3 to Beverley Hills water including a fixed charge of Vatu 1,210. Bellevue and Beverley Hills water customers are billed every quarter.
The uniform tariff of 127 Vatu/m3 is a 24% and 7% increase in the quarterly consumption charge for Bellevue and Beverley Hills customers, respectively. There is no change made to the fixed connection charge. It remains at Vatu 1,210.
Recommendations are made by the Authority to address network efficiency. BBHWS significant cost of operating the water service is electricity which makes up 40% of the total cost of service. Over the years from 2022 to 2023, BBHWS electricity cost had drastically increased from Vatu 12.2M to 15.8M. BBHWS other operating costs had increased by only Vatu 1M. The increase in electricity cost is the main driver for the increase in tariff of 127.87 Vatu/m3.
The uniform tariff of 127.87 Vatu/m3 covers the water supplier’s total cost of operations for one year and it includes 50% of BBHWS total allowed return on investments made. The Authority has identified and outlined certain aspects of the network that require improvements. Once the issues highlighted in the Authority’s report have been resolved by BBHWS and verified by the Authority the operator will be allowed to recover the remaining 50% of its return on investment amount.
BBHWS is the largest privately owned small water system apart from UNELCO’s Port Vila water system. BBHWS began its operations in 1993 and registered with the Authority as a Small Water Supplier in 2014. From 2019, the operator has improved recording of its operational data and information. This is the Authority’s first complete tariff review for BBHWS as there is sufficient data and information made available by the regulated utility to the Authority during the tariff review process.
The tariff review process had included a site visit by the Authority on 2nd July 2024 to conduct a technical assessment of the water system, and financial auditing of BBHWS financial records.
The Authority’s detailed report, Case U-0011-24 – In the Matter of Bellevue and Beverley Hills Water Supply Tariff Review, can be accessed on the Authority’s website at www.ura.gov.vu
The Authority’s Chief Executive Officer acknowledges Bellevue and Beverley Hills Water System Management’s positive cooperation during the tariff review process and looks forward to providing further assistance with improving water services for Bellevue and Beverley Hills customers