Acting Executive Secretary of the Public Utilities Regulatory Commission (PURC), Dr Shafic Suleman, has stated that the Utility Service Providers will require a capital investment of $320 million to reduce distribution and commercial losses in their networks.

He suggested that the amount could be raised through public-private partnerships (PPPs) to strengthen the operational efficiency of the utilities.

Dr Suleman made this known when briefing Parliament on Wednesday, December 10 on the rationale behind the recent 9.86% and 15.26% upward adjustments in electricity and water tariffs.

He explained that while quarterly tariff reviews were influenced by factors such as inflation, exchange rate movements, and the hydro-thermal generation mix, the latest adjustment was part of the multi-year tariff framework, which took into account utilities’ investment needs over a three-to-five-year period.

“The recent upward adjustment is a multi-year tariff and not the quarterly one,” he clarified, adding that the Commission would soon publish a decision note outlining the factors considered in the tariff review.

Responding to concerns from Members of Parliament (MPs) about inadequate stakeholder engagement, Dr Suleman stressed that the PURC had held consultations in 10 regions, engaged the Parliamentary Committees on Energy and Sanitation, and planned further meetings with the leadership of both the Majority and Minority Caucuses.

Some MPs, however, raised concerns about the poor quality of services delivered by the utility companies, citing frequent interruptions in water supply and the issuance of high monthly bills despite the non-flow of water in many households.

Dr Suleman assured Parliament that the PURC remained committed to balancing the interests of consumers and service providers while ensuring sustainable investment in the utilities sector.