Water and Sewerage Authority (Amendment) Act (No. 9 of 1994)

No.9.] [L.S.] 33 Water and Sewerage Authority (Amenu.nent} Act I A"SENT STANISLAUS JAMES, Governor-General. 29th]ulv, 1994 Q A T1\T'r T T TrT A U..i. ~.J...J..""i...i.. ~~; '-"..i..,i ..... No.9 of 1994 [1994. AN ACT to amend the Water and Sewerage Authority Act in order to nrescrihe new formulae with resnect to method to he nsad1> ';'. - - -- •• in computing charges. [ oth August, 1994 ] BE IT ENACTED hv the Oneerr's Most Rxcellenr Maiestv hv., - ~ ..: .. ..: and with the advice and consent of the House ofAssembly and the Senate ofSaint Lucia, and hy the authority of the same, as follows' 1. This Act may be cited as the Water and Sewerage Authority Short tit I",. (Amendment) Act, 1994. No.9.] 34 Water and Sewerage Authority (Amendment) Act [1994. Amendment of Principal Act Amendment of Section IS of the ..Principal Act Amendment of Section 24 of the Principal Act. Repeal and replacement of :;:ctic~ 25 of Principal Act 2. The Water and SewerageAuthorityAct, No.18 of1984 in this Act referred to as " the Principal Act, is amended by deleting the word " Schedule" wherever it appears therein and substituting therefor the words" FIRST SCHEDULE ". 3. Section 15 of the principal Act is amended (a) by deleting the marginal note thereto and substituting therefor the following: " Revenue matters and rate of return ": and " For the purposes ofsubsection (1) the Authority shall be entitled to a rate of return calculated in accordance with the formula prescribed in PART A of the SECOND SCHEDULE, but such rate shall not be less than three percent. ". 4. Section 24 of the principal Act is amended (a) by deleting the words" No. 12 of 1975 " appearing as a marginal note thereto; (b) by deleting the words" and the Public Utilities Commis sion Act " appearing in lines one and two of subsection (1) thereof; and ( ..... \ l. ............. ..... n 1: ronhro~",+:.n I~\ tt....o. .. o.-.l" no A ........,,"r-+:h'l+~ ...u·.. th4 \"'J U] J"'l-'''Ul.lll6 liJIUV~"'vUVu. \~) \,U""",,",V.L ""u,",, ';'\.&"",",U","",""U6 ua"" following: U"T"'\...,,.. A ",.'k .....:............... ..,,11 .&':., ft hn ..""o ."'" ",n ".~n ,.,.o. nr:+h .J. U,""' .rl.UU.lV1J.\1 "!IUU UA U \0111'416'" .1U " .... """'IUU."".... \,I .,.. ... 4-U section 25 or by agreement with any person". 5.-{1) Section 25 of the principal Act is repealed and the following substituted: "Computation of The Authority shall fix the charge for any ser charges. ..: .1:' ..1 .1:' :1: ..: •• :..1 ..1 -= 1. .. VI\.N ~U.VU.ul;;U, 1.a\'-UlUI;;O> PIVVIU.-u VI uou.., made available by the Authority on the basis ofthe .• ~ ....... 1 ••1 ... ..J : ...2 . ..; ...1. ~t.. HUC U.L ICLUIU \,41\.-UI(lLCU IU a\.-'-Uluau\.-c Wlu.l Ull;; SECOND SCHEDULE. (2) Where the rate at"return is less than three per cent, the charges referred to in subsection (1) shall be increased based on the formula prescribed in Part B of the SECOND SCHEDULE. (3) An increase or decrease of charges under C:lIh<:p.{"tinn (?\ c:h:lll hp. p.ffp.rtp.n :It intp.TV:ll<: nf c:iy----- . .- '-I ----- -- ----... - . -- . . -- -- months after the commencement of this Act. No.9.] 35 Water and Sewerage Authority (Amendment) Act (4) Nothing in this section shall affect any power of the Authority to make any agreement as to charges that it is empowered to make by any enactment passed prior to 3rd October, 1984. (5) For the purposes of this section and the SECOND SCHEDULE '(deficit return" means the quantum by which the rate ofreturn of the Authority as calculated in accordance with Part .A.. of the SecondSched ule, is less than three per cent or such other rate as prescribed by the Minister; "net operating income" means the difference between the income from opera tions and the total direct administrative and other expenses incurred in generating this income; "rate base" means the average net fixed assets of the Authority at replacement cost plus aver age inventory; "rate of return" means the rate of return of the Authority calculated in accordance with Part A of the SECOND SCHEDULE; "surplus return" means the quantum by which rate of return of the Authority as calculated in accordance with PartA of the Second Sched ule, is more than three per cent or such other rate as prescribed by the Minister." [1994. .. Proposals regarding charges. 6. The principal Act is amended by inserting immediately after section 25 the following as sections 25A and 25B. 25A (1) Where the Authority proposes to fix, decrease orincrease chargesfor services performed or facilities provided, the proposals shall be submitted to the Certification Committee at least thirty days prior to the date of the intended imple mentation. (2) On receipt of any proposal under subsection (1), the Certification Committee shall examine the proposals in order to determine whether there is comnliance with the relevant formulae orescribed. . in the SECOND SCHEDULE. Insertion of new sections 25A and 24B in Principal Act. No.9.] 36 Water and Sewerage Authority (Amendment) Act 1994. (3) For the purposes of subsection (2), the Certification Committee shall prepare a report in which must be included (a) an evaluation of the proposals; (b) a statement as to whether there is compli ance with the formulae prescribed in the Second Schedule; and (c) comments or observations on the perfor mance of the Authority. (4) A report prepared for the purposes of this section shall be submitted to the Minister and the Authority at least seven days prior to the date of intended implementation of the proposals. (5) Unless otherwise directed by the Minister, the Authority shall give effect to the recommenda tions of the Certification Committee with respect to the proposals submitted under subsection (1). (6) For the purposes of this section "Certifica tion Committee means the Certification Commit tee established by section 33 of the Electricity Supply Act, 1994. Review of Charges 25B (1) After the commencement of this Act, the Review Board shall at the end ofeach financial year review the charges that are calculated under this Act and charged by the Authority. (2) A review for the purposes of subsection (1) (a) must determine the accuracy or other wise of the charges imposed by the Au thority for the financial year ending im mediately prior to the commencement of the review. (b) may contain recommendations with re spect to the charges imposed by the Authority; and (c) must commence within sixty days after the end of the financial year that is sub ject to review. (3) A report for the purposes of this section shall be completed and submitted to the Minister and the No.9.] 37 Water and Sewerage Authority (Amendment) Act Authority within ninety days from the date of the commencement of such review. (4) The Authority may within fourteen days of the receiptof the report of the Review Board make submissions to the Minister with respect to any .thing contained in the report. (5) Unless otherwise directed by the Minister, the Authority shall give effect to any recommenda tions contained in the report of the Review Board. (6) For the purposes of this section "Review Board" means the Review Board established by section 34 of the Electricity Supply Act, 1994. (7) For the purposes of this section and section 25A, " Minister" means the Minister of Finance. " [1994, 7. The principal Act is amended by inserting immediately after Amendment of the First Schedule, as re-numbered by section 2, the Second principal Act. Schedule as contained in the Schedule to this Act. SCHEDULE (Section 7) "SECOND SCHEDULE (Section 15 (2) 25 (2)) PART A The rate of return must be calculated as follows: Net Operating income x 100 Rate Base PARTB Increase in charges must be calculated as follows: Dollar Value of Deficit return Volume of Water sold or Sewerage treated Where dollar value of deficit return is equal to: Deficit Return x Rate Base 100 No.9.] 38 Water and Sewerage Authority (Amendment) Act PARTe Decrease in charges must be calculated as follows: Dollar Value of Surplus Return Volume of Water sold or Sewerage treated Where dollar value of surplus return is equal to: Surplus Return x Rate Base 100" [1994. Passed in the House of Assembly this 27th day of June, 1994. W. ST. CLAIRE DANIEL, Speaker. Passed in the Senate this 12th day of July, 1994. E. NEVILLE CENAC, President. SAlNTLUClA PRINTED BYTHE GOVERNMENT PRINTER AT THE GOVERNMENT PRINTING OFFICE CMiTRIES 1994 [ Price $3.00 ]