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States Tenants: Water Utility Charges Increase - April 2012

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A decision made 8 February 2012:

Decision Reference:      MD-H-2012-0013 

Decision Summary Title :

DS - Increase in water charges to States Tenants – April 2012

Date of Decision Summary:

6th February 2012

Decision Summary Author:

 

Finance Director

Decision Summary:

Public or Exempt?

(State clauses from Code of Practice booklet)

Public

Type of Report:

Oral or Written?

Written

Person Giving

Oral Report:

 

Written Report

Title :

WR- Increase in water charges to States

Tenants – April 2012

Date of Written Report:

6th February 2012

Written Report Author:

Senior Management Accountant      

Written Report :

Public or Exempt?

(State clauses from Code of Practice booklet)

Public

Subject:

Increase in water charges to States Tenants – April 2012

Decision(s):

The Minister,

          

  1. approved the increase in charges for water supply to States Tenants by 2.5% with effect from 1st April 2012.

 

Resource Implications:

Financial: Increase in revenue of £520 per week which will be offset by equivalent increases in the cost of supply.

Action required: Finance Director to notify the Treasurer of the States and notify affected Tenants and Income Support of the changes.

Signature:

 

Position:

Minister

Date Signed:

 

Date of Decision (If different from Date Signed):

 

States Tenants: Water Utility Charges Increase - April 2012

Date of report 6th February 2012

 

REPORT FOR THE MINISTER FOR HOUSING

 

Increase in Water Charges to States Tenants

 

Purpose

 

To consider an increase in water charges to States tenants.

 

Background

 

The Housing Department pays Jersey Water a quarterly sum in advance for the provision of water to its social housing stock. This cost is recharged to tenants by way of a weekly charge to their rent account.

 

Jersey Water has recently announced that it is to increase the charge for unmeasured supply by 2.5% from the 1st April 2012. In order to ensure full recovery of the cost of supply it is necessary to increase the cost to tenants by a similar amount.

 

The table below sets out the impact of this increase:

 

Property Type

 

Number of Bedrooms

 

Existing Charge (exc GST)

 

Increase at 2.5%

 

New Charge (exc GST)

 

Number of Units

 

 

 

 

£

 

£

 

£

 

 

Bed Sitter

 

0

 

4.16

 

0.10

 

4.26

 

298

 

 

 

 

 

 

 

 

 

 

 

Bungalow

 

0

 

4.16

 

0.10

 

4.26

 

8

 

 

1

 

4.44

 

0.11

 

4.55

 

39

 

 

2

 

4.77

 

0.12

 

4.89

 

6

 

 

3

 

5.46

 

0.14

 

5.60

 

2

 

 

 

 

 

 

 

 

 

 

 

Flat

 

1

 

4.44

 

0.11

 

4.55

 

1644

 

 

2

 

4.77

 

0.12

 

4.89

 

1111

 

 

3

 

5.46

 

0.14

 

5.60

 

91

 

 

 

 

 

 

 

 

 

 

 

House

 

1

 

4.44

 

0.11

 

4.55

 

26

 

 

2

 

5.46

 

0.14

 

5.60

 

242

 

 

3

 

5.46

 

0.14

 

5.60

 

705

 

 

4

 

6.34

 

0.16

 

6.50

 

119

 

 

5

 

7.47

 

0.19

 

7.66

 

7

 

 

6

 

7.47

 

0.19

 

7.66

 

2

 

 

 

 

 

 

 

 

 

 

 

Maisonette

 

1

 

4.44

 

0.11

 

4.55

 

3

 

 

2

 

4.77

 

0.12

 

4.89

 

144

 

 

3

 

5.46

 

0.14

 

5.60

 

41

 

 

4

 

6.34

 

0.16

 

6.50

 

2

 

 

Compliance with Financial Directions

 

Financial Direction 4.1 requires that any increases in charges should normally be limited to 2.5% and increases above this level must be referred to the Treasury and Resources Minister for approval.  This increase falls below that limit and thus the approval of the Treasury and Resources Minister is not required. Further, the Treasurer of the States, under delegated authority from the Treasury & Resources Minister, has granted an exemption to this requirement for approval where the increase in charges made by the Department is directly offset by an increase in the costs in supply of the utility service. (TR-2010-DD24).  The Department will however inform the Treasury and Resources Department of this increase.

 

Recommendations

 

That the Minister;-

 

 

  1. approve the increase in weekly water charges to States tenants by 2.5% with effect from 1st April 2012.

 

 

Housing Department

 

Report Prepared By: -

 

Jason English

Senior Management Accountant

 

………………………………                   Date:                                          2012

 

 

Report Checked By: -

 

J C Hamon

Finance Director

 

……..……………………….                   Date:                                         2012

 

 

Authorised By: -

 

Ian Gallichan

Chief Officer

 

……………………………….                  Date                                          2012

 

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