We do not envy the Office of Utilities Regulation (OUR) as it considers the application by the National Water Commission (NWC) for a 51 per cent tariff increase. It is a decision fraught with competing interests, neither of which can be dismissed lightly: The need to keep a financially struggling utility afloat and repair a deteriorating water network, and the hardship that a substantial increase in water bills would impose on already burdened households and businesses.

The NWC’s predicament is not difficult to understand. It is operating under mounting financial pressure, with energy costs reportedly nearly 50 per cent higher than in 2019 — the year of the last tariff adjustment — and salaries having doubled over the same period. The utility has also endured revenue losses associated with the COVID-19 pandemic, repeated droughts, and the damage and disruption caused by severe weather events, including Hurricane Melissa last year.

Its operating expenses have continued even when drought reduces the amount of water available for sale. Meanwhile, the country’s ageing pipes and other infrastructure require urgent attention if Jamaicans are to enjoy a reliable supply of this most essential resource.

Water Minister Matthew Samuda has made a compelling point about decades of inadequate investment, noting that the NWC has never replaced even one per cent of its asset base in a single year during Jamaica’s independent history. That is a damning indictment of successive administrations, which have allowed the problem to fester, leaving the current generation to confront the consequences of years of neglect.

The repeated pipeline failures at Coral Gardens in Montego Bay, including six breaks in a single month and a $170-million intervention to safeguard the main supply line, illustrate the consequences of deferring essential maintenance and replacement. The country cannot continue to expect a dependable water supply while failing to invest adequately in the infrastructure needed to deliver it.

Still, understanding the NWC’s financial difficulties does not mean Jamaicans should be expected to accept a 51 per cent tariff increase without question. Consumers are already struggling with a high cost of living, with inflationary pressures driven in part by geopolitical developments affecting prices and supply chains. As Mr Samuda himself acknowledged, Hurricane Melissa inflicted a further economic setback last year, compounding the difficulties facing households and businesses still trying to recover.

Water is not a luxury that consumers can simply do without, nor is it an expense that most households can easily reduce to accommodate a steep increase. For lower-income families in particular, the proposed adjustment could mean having to make difficult choices between basic necessities.

This is why the OUR’s review is so important. It must carefully weigh the NWC’s legitimate need for financial sustainability against the capacity of consumers to pay. The fact that the utility requires additional revenue does not automatically establish that the full 51 per cent increase is justified, or that it represents the fairest way to meet its needs.

The regulator must scrutinise the application, examine the commission’s operating costs and investment plans, and determine whether the proposed increase is reasonable. It should also assess what safeguards can protect the most vulnerable consumers, including whether lower increases for the smallest users are feasible.

Equally important, any tariff adjustment approved must be accompanied by clear, measurable commitments to reduce water losses, replace ageing infrastructure, and improve service reliability. Jamaicans should not be asked to pay substantially more only to continue enduring frequent disruptions, leaking mains, and water shortages.

The NWC needs a viable path forward, but consumers deserve accountability for every additional dollar they are required to pay. The OUR must strike that difficult balance.