Granting a significant tariff increase to the National Water Commission, NWC, at this time would be insensitive.

This is the view of two business leaders who were guests of Nationwide This Morning on Wednesday.

Colliecia Wright reports.

The NWC is asking the Office of Utilities Regulation, OUR, for a 51 per cent tariff increase.

The utility provider says the rate hike would plug the $33 billion gap in its payables, $21 billion of which is owed to the government.

But President of the Small Business Association of Jamaica, Garnett Reid, argues that the move would only add to the burdens saddling small businesses.

Past-president of the MSME Alliance, Donovan Wignall, is of a similar view.

At Tuesday’s sitting of Parliament’s Public Accounts Committee, the NWC’s acting CEO, Kevin Kerr, warned that without the requested increase, the agency will have to rework its investment plan, meant to help the company keep pace with growing demand.

He said cash flow has been significantly eroded due to mounting financial pressures and deteriorating customer payment performance.

Wignall says the NWC could instead raise funding through the issuance of a bond.

Before any new rate takes effect, the OUR must review the NWC’s application, which includes public consultation.

The regulator can approve the request in full, grant a smaller increase or turn it down.

In a statement on Tuesday, the OUR said the application covers the five-year period 2026/27 to 2030/31.

Meanwhile, president of the Jamaica Employer’s Federation, Wayne Chen, says any consideration for a tariff increase has to take the cost of living realities now facing Jamaicans into account.

Chen says a major factor contributing to NWC’s $33 billion budget gap is the 70 per cent of water that’s not paid for.

He says there’s a need for revised key performance indicators from NWC, to include improved management of customer payments.

Wayne Chen, President of the Jamaica Employer’s Federation. He was speaking on Cliff Hughes Online on Wednesday.