Student Q & A

Would you consider The Water and Sewerage Corporation a monopoly?

No. The WSC is not considered a pure monopoly due to many Bahamians using well water.

Other than well water, are there any other suppliers of water for Bahamian consumers?

New Providence Development Company supplies water to parts of western New Providence and Paradise Island Utility supplies most of Paradise Island.

What legislation is Water and Sewerage protected under?

The Water & Sewerage Act 1976.

What is your pricing strategy as a monopoly firm?

The WSC fees are legislated by Parliament and can only change via an amendment to the Act, via approval by government for a tariff increase.

What is Water and Sewage largest expense per month?

In 2014 Water Purchases totaled $34 MN (48% of operating expenses). Staffing was $22.7 MN (32%)

How do you operate to keep your input cost low to gain a profit?

The Corporation relies mainly on tariff increases to improve profits but there has been no tariff increase since 1999 which has affected profitability. Cost containment strategies include: public/private partnerships in water production (private sector builds/owns/operates), a $51 Million loan project to reduce water losses due to leaks; greater reliance on technology.