THE NATIONAL Irrigation Commission (NIC) recorded a surplus of $6.664 million for calendar year 2000, according to information contained in the commission's annual report for 2000/2001 which was tabled in Parliament last Tuesday.
This was realised despite an increase in operating cost of of $8.658 million. Total operating cost at the end of 2001 was just over $989 million.
The fixed asset for the NIC stood at $961,842,880 at March 31, 2001 which is a reduction of $9,825,414 from the $971,668,294 value for 2000.
In terms of operation, a total of 127,097,660 cubic metres of water was produced during the financial year, with 66 per cent of that volume being invoiced. This represents a 4 per cent increase in invoicing levels over that obtained during the previous year.
The increased invoice levels were attributed to investment in flow-measuring devices, notably in Clarendon and increased awareness by both consumers and staff members of the need for increased efficiency in water useage.
The Rio Cobre Irrigation system continues to provide the highest proportion of the flows, contributing 65 per cent of the water produced during the year.
Energy costs continue to pose a serious challenge to the management of water production the report said. During the second half of the financial year, electricity rates rose sharply, the result of increased fuel prices and a rate increase and new tariff structure granted to the Jamaica Public Service Company JPSCo. This resulted in the demand charge at some stations going up by as much as 300 per cent.
During the period, the Commission continued a process of retrofitting by installing variable speed drives at pumping stations in Rhymesbury, Hounslow and Lime Tree. It said while there appeared to be some reduction in energy costs at these stations, the full benefits are still being quantified.
The amnesty granted to delinquent customers of the NIC from February 1, 2000 to April 30, 2000 was further extended to July 14, 2000. This was done in an effort to further assist the cane farming community owing to the late reaping season. Eligible farmers who paid by March 2000 received a 50 per cent write-off on their arrears as at October 31, 1999, while others who paid thereafter received a 30 per cent write-off. This did not, however, include illegal customers who had to meet the original deadline.
Of the $20.86 million outstanding as at October 31, 1999, a total of $10.151 million was collected from large and small customers. Approval was obtained to write-off $6,430,013.20 in bad debts during the year. Customers owing the remaining $4,278,273.71 have been targeted in phase two of this exercise for legal action.
