Connect Saint Helena Ltd is proposing a utilities tariff review from 1 October 2017. This will see a significant increase in water charges but no increase in electricity charges.
The cost of providing electricity is covered by the electricity tariff income but the average cost to supply a cubic metre of water is Pound 7.11 so Connect makes a loss of Pound 5.43 on each unit of water supplied.
SHG recognises the implications these proposed increased water tariffs will have for consumers and as a result has agreed a level of subsidy to Connect which will reduce considerably the increase that consumers will have to pay.
The Minimum Income Standard which is used to calculate Basic Island Pension and Income Related Benefits will be adjusted to take into account this increase.
Qualifying agricultural customers will receive targeted subsidy payments directly from SHG to offset this increase.
Source: St Helena Government