YEA calls for balanced approach to NWC’s proposed 51% water rate increase

KINGSTON, Jamaica—The Young Entrepreneurs Association of Jamaica (YEA) is calling for a balanced and consultative approach to the National Water Commission’s (NWC) proposed 51 per cent tariff increase, emphasising the need to safeguard the sustainability of Jamaica’s water infrastructure while protecting the competitiveness and viability of micro, small and medium-sized enterprises (MSMEs). The association, in a press release, said it recognises that a reliable, efficient and financially sustainable water supply is critical to Jamaica’s economic development, business productivity and national growth. It also acknowledged the financial and infrastructural challenges facing the NWC and the importance of continued investment to improve water security and service delivery. However, YEA President Cordell Williams cautioned that the proposed increase must be carefully assessed against the economic realities facing Jamaica’s small business sector. “Water is not simply another utility bill for many entrepreneurs. It is a critical input into production, service delivery and daily business operations. A significant increase in water rates can affect profitability, competitiveness and ultimately the prices consumers pay. We must therefore be mindful of the cumulative pressures being placed on small businesses, many of which are already operating within very tight margins,” Williams stated. The YEA said the regulatory review presents an opportunity to strike an appropriate balance between the NWC’s need for financial sustainability and the ability of businesses and households to absorb additional costs. The association is therefore encouraging the Office of Utilities Regulation (OUR) to ensure that the review process includes meaningful consultation with MSME stakeholders and a comprehensive assessment of the potential impact on small businesses, particularly those operating in water-intensive sectors such as food production, hospitality, manufacturing, agriculture, personal care and other service industries. “We are not questioning the importance of investing in Jamaica’s water infrastructure. In fact, improved water reliability is essential to business development and economic growth. However, investment decisions must also take into account affordability, productivity and the capacity of businesses to remain viable. We cannot strengthen one critical pillar of the economy while inadvertently placing additional strain on another,” Williams added. The association is also recommending that consideration be given to phased implementation, where appropriate, and other practical measures that could minimise economic disruption, particularly for smaller enterprises. The YEA believes that any approved tariff adjustment should be accompanied by measurable commitments to operational efficiency, financial accountability, reducing water losses and improving service quality, so that customers can see tangible value from any additional expenditure. Williams further emphasised that improving water infrastructure and strengthening Jamaica’s MSME sector should be viewed as complementary national development priorities rather than competing objectives. “Ultimately, we all want a water sector that is efficient, reliable and sustainable. But we must also preserve the productive capacity of the entrepreneurs who create jobs, generate economic activity and contribute to national development. The solution must be one that supports both objectives,” said Williams. READ: NWC seeks 51 per cent tariff increase