FURTHER above-inflation hikes in Islanders’ water bills cannot be ruled out due to uncertainty over how much potential PFAS-related infrastructure improvements could cost, the head of Jersey Water has said.
Yesterday, it was confirmed that, from 1 January, average household water bills will rise by around £30 per year. This will bring the average annual water bill to £473.77, a rise of around 6.9%.
It follows a 15.5% hike in water bills that took effect at the start of this year, and 5.7%, 10.9% and 6% rises in each of the preceding years respectively. Jersey’s most-recently published RPI rate stands at 2.8%.
Jersey Water chief executive Helier Smith defended the move, which comes as the firm unveiled plans for a £26 million investment in the Island’s desalination plant.
In a Scrutiny hearing this week, Environment Minister Mary Le Hegarat said that plans to introduce legal PFAS limits have been put on hold while ministers work with Jersey Water to understand the full impact the legislation would have on the business. (Full story: page 5)
Asked if customers would now see a period of relative stability following the new charges, Mr Smith said: “The upfront increases that we’ve announced are really to minimise the overall cost for our customers, and we do look at our charges every year and take every opportunity to keep them as low as we reasonably can.”
He continued: “I can’t rule out further increases above RPI, but we will be looking at lower levels than we have seen in this year and last year going forward.”
However, Mr Smith also noted the potential infrastructure costs that could stem from future regulatory, technical and delivery requirements regarding PFAS, which Jersey Water is preparing for with treatment technology evaluations and pilot trials.
He explained that, following the conclusion of the trials at the end of next year, the business would have a better understanding of the solution – and the impact on customer bills that could follow.
Mr Smith added: “Obviously we need to continue investing and making sure that we’ve got enough financial resources to protect the water resources that the Island so desperately relies on.
“We have 120 days of storage, which is a very small amount, and we need to make sure that we’ve got the resources to supply the Island with water in times of drought.”
Most of the price increases implemented by Jersey Water in the last two decades have been either in line with or below RPI. The above-RPI hikes seen more recently, including the rise of 15.5% implemented at the start of this year, have come as the company looks to fund its five-year strategy to 2030.
Mr Smith noted that the £48 million strategy is the largest investment programme Jersey Water has undertaken.
Among other upgrades, the plans include major work on the desalination plant that will increase its output by up to 50%.
“This really is a milestone investment package for Jersey Water and the necessary increase in charges is to fund that,” Mr Smith said.
“We’ve been acutely conscious of the impact on customers and cost of living and taken every effort to make sure that the increase is as low as it can be, while balancing that essential need to invest in our infrastructure.”
