Statement by the Chairman of the Isle of Man Water and Sewerage Authority Future Funding of the Isle of Man Water and Sewerage Authority The Isle of Man Water and Sewerage Authority is a Statutory Board of the Isle of Man Government and is responsible for the distribution of wholesome drinking water to properties on the Island, the provision of sewage treatment and sewerage systems and it provides an overview on all flood risk management matters on the Island. On 1 April 2010, the Isle of Man Water Authority merged with the Drainage Division of the Department of Transport to form the Isle of Man Water and Sewerage Authority. The Authority’s operations are currently financed via two separate income streams. The clean water function is funded via income derived through water rates and charges whilst the sewerage and flood risk management functions are funded from general taxation, as approved annually by Tynwald in the Budget. As part of the Government’s budget re-balancing strategy, from 2013/14 there will be a year on year reduction in the revenue grant provided to the Authority. In addition, Treasury will be re-introducing the requirement for the Authority to meet the full cost of its sewerage capital loan repayments together with the interest charges. In order to continue to operate without going into deficit it will be necessary to change the way that these important functions are funded. The Authority has concluded, and the Council of Ministers has agreed, that the only practical solution is to seek Tynwald’s approval for the introduction of a Sewerage Charge, as provided by the Flood Risk Management Act. It is proposed that the Charge will be levied on all properties connected directly or indirectly to a public sewer. At the same time, and to ensure fairness, the Authority will also levy a charge for emptying septic tanks across the Island. In order to ensure a smooth introduction of the Charges, and to give the public time to adjust to the change, a phased transition is proposed. It is proposed the Sewerage Charge will be introduced from 1st April 2014 at £50 per property or apartment per year and this will rise to £100 per property per year from 1st April 2015. It is proposed the charge for emptying a septic tank will be introduced from 1st April 2014 at £50 for each empty and this will rise to £100 per empty per year from 1st April 2015. Following the introduction of the charges, an assessment will be made on their equitability and the affordability for any further increases in future years. The aim of the charging regime is to ultimately produce a financial model which will ensure sufficient income is generated to fund the Authority’s sewerage operations into the future, to further improve the Island’s infrastructure as well as improving the service that it provides to its customers. The implementation of the charges is not connected with the proposed merger between the Authority and the Manx Electricity Authority to form the Manx Utilities Authority. Subject to Tynwald approval, the charges are to be implemented, whether or not the merger takes place. An Order will be brought to Tynwald seeking approval to bring the charges into effect from 1st April 2014. In addition, the Authority will carry out a public consultation exercise on the proposed implementation of a consenting and charging regime for the reception and treatment of trade effluents at the sewage treatment works. These are liquids which are produced at trade or industrial premises and which are often high in volume and biological load and which can have a significant detrimental impact on the sewage treatment processes. The consultation process will be followed by sampling and testing the trade effluents produced at the various trade premises, to accurately determine the flows being discharged to sewer and their effect on the capacity of the sewage treatment works. The Authority, in conjunction with the Department of Economic Development, will then analyse this information and issue discharge consents to the trade premises confirming the flow and load which can be discharged to the public sewer system. The Authority will also consult on the introduction of charges for the reception and treatment of the trade effluents at the sewage treatment works. The charges will have regard to the composition, volume and rate of discharges to sewer and the costs incurred in treating and disposing of the trade effluents.
Posted on: Wed, 22 Jan 2014 09:02:14 +0000
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