KINGSTON, Jamaica, Oct 22, CMC – Business groups, hoteliers and the political Opposition in Jamaica are urging regulators to reject or impose conditions on a proposed 51 per cent increase in water and sewerage rates, warning that the adjustment would place further pressure on consumers and businesses already facing rising costs and water shortages.
The National Water Commission (NWC) is seeking approval for the increase from the Office of Utilities Regulation (OUR), as drought conditions and concerns about the utility’s management of water resources add to the debate over whether customers should pay more.
Garnett Reid, president of the Small Businesses Association of Jamaica, said many operators were still recovering from Hurricane Melissa, with some awaiting insurance payments for property damage while having to purchase alternative water supplies.
“I understand that it is a recommendation and the OUR is looking at it, but we are giving them notice, both the Government and the OUR, not to grant an increase to the NWC at this time,” Reid said.
He said some small and medium-sized businesses were paying between J$10,000 (US$1=JMD$158) and J$20,000 for a truckload of water as drought-related restrictions affected their operations.
Reid said some businesses had been forced to cut production or suspend services because of water shortages.
He cited the example of a woman who manufactures shampoo and had reduced production because of water restrictions, as well as restaurants that sometimes had to close and hairdressers unable to work without an adequate supply.
Reid also questioned the NWC’s financial management, arguing that years of inadequate attention to ageing infrastructure had contributed to significant water losses.
During Tuesday’s sitting of Parliament’s Public Accounts Committee (PAC), NWC officials said non-revenue water losses averaged between 70 per cent and 73 per cent nationally.
Emile Leiba, president of the Jamaica Chamber of Commerce, also urged the utility to explore alternative sources of financing rather than transfer additional costs to households and businesses.
“If there are greater needs of the NWC than they are currently able to manage based on the existing budget, I think the better course is to look for funding elsewhere, rather than passing that on to the companies and individuals who may not be able to afford a significant increase in the water rate,” Leiba said.
He said that if the OUR approves the adjustment, it should be introduced gradually and applied equitably, noting that water is an essential input for manufacturing and other business operations.
The tourism industry has also raised concerns about the potential impact, particularly on smaller independent hotels already struggling with debt and the effects of successive economic and weather-related shocks.
Richard Wallace, operator of Boardwalk Village Hotel in Negril, said water was already a major expense for the sector, with sewerage charges adding substantially to bills in the resort area.
He explained that a hotel paying J$100 for water could face an additional J$100 in sewerage charges.
Wallace also warned that unexpected leaks could result in large bills for smaller properties, citing cases in which hotels had accumulated charges of hundreds of thousands of dollars, with one reported case exceeding J$1 million.
Jamaica Inn Managing Director Kyle Mais said the proposed increase would add to the financial pressures facing an industry still recovering from the COVID-19 pandemic and the effects of hurricanes Beryl and Melissa.
“We’re on the road to recovery, but we haven’t recovered. We’re still struggling,” Mais said, pointing to disappointing visitor arrivals during the summer and high airfares that have made travel to Jamaica more expensive.
He said smaller, independent and family-owned hotels were particularly vulnerable because many had taken on substantial debt during the pandemic to keep their businesses operating and retain staff.
Mais also warned that the proposed water rate adjustment, combined with a separate proposed 50 per cent increase in General Consumption Tax affecting the industry, could place some businesses under further strain.
The Jamaica Hotel and Tourist Association (JHTA) has acknowledged the need for investment in water infrastructure and financially sustainable operations at the NWC but said more information was needed about the proposed increase and the benefits customers would receive.
JHTA president O’Brian Heron said the association wanted clarity on how the adjustment would affect different customer categories, particularly hotels and attractions, which are among the utility’s larger commercial users.
The association is also seeking details on the expected improvements in service reliability, water quality and the reduction of water losses, as well as the timeframe for delivering them.
Meanwhile, Opposition spokesman on water Ian Hayles has called on the OUR to withhold approval until the NWC demonstrates that it is managing the country’s water resources effectively.
Hayles cited inflation of 8.6 per cent, the cost of purchasing water from private truckers and reports of customers being billed for supplies they did not receive.
He has also called for the NWC to submit outstanding audited accounts and present a credible plan to reduce non-revenue water losses.
Other proposals from the Opposition include publication of a national water master plan, quarterly progress reports to Parliament, an end to billing customers who receive no water, a flat rate for pensioners and a social rate for households using up to 2,000 gallons monthly.
The proposed increase remains subject to regulatory consideration.
CMC/ed/2026