Caasd revokes Santo Domingo water rate hike

- Tuesday, August 9, 2011

Caasd revokes Santo Domingo water rate hike

The Dominican Republic's Santo Domingo water utility Caasd has revoked a tariff hike on potable water which was placed on three of the five districts it covers, according to Caasd director Freddy Pérez.

The rate hike was implemented on July 1 on the grounds that only 13% of the local population connected to a potable water pipeline pays their water bill, which equates to some 90,213 people. Low-income households were excluded from the hike.

Following the move, large companies paid 192-320 pesos/m3 of water consumed, while smaller firms paid 162-270 pesos, daily El Masacre reported.

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On Tuesday (Aug 9), President Leonel Fernández called on the utility to withdraw the rate increase due to the effects of the current global financial crisis.

The national government will continue its 13.79-peso subsidy for each cubic meter of water used by connected households.

Fernández also called for more efficient use of the resource, considering the 60% water loss rate in the capital city.