Delayed Execution

WEB hedged fuel prices until the end of last year, but from December 2021 or perhaps January 2022, the media confirmed that WEB was losing money because of rising fuel costs.

WEB & Elmar both, had to raise the price of water and electricity months ago, to correspond to the increases, but they opted to wait.

Talks about the subject must have been going on, especially since the director of WEB is a relative of MinPres. They must have talked to each other, but no one wants to be the one who raises the cost of utilities, no one wants to be remembered as a heartless scrooge.

Currently it is obvious, they have no choice, and finally, the board gave the green light signal and they popped the news.

We shouldn’t have been surprised.

We know how much we pay at the pump.

And we act accordingly, we drive less.

We now have to also shower less, and be frugal with our water consumption.

(If we could have trapped yesterday’s downpour, we’d be good for a year.)

Then the political machine went to work, to squeeze WEB into retraction. We didn’t know, we weren’t notified, said a surprised, innocent MinPres.

Thus, the hike was retracted. But it is just temporary relief. A delay in execution.

It bought us one month, at the most.

Both Web & Elmar must raise rates, it’s inevitable.

Their banks must be nervous too, because both companies carry debt in the hundreds of millions, and must meet their obligations, which they can’t, if they don’t make money.

Just like eggs, bread and bananas, utilities took a price hike, and we have to look at what we spend, buy what we need not what we want, identify water-saving strategies.

One of my friends explained how they get to the new rates published Wednesday. They look at the general consumption, and their budget, and figured out how much they must charge in order to pay all their bills, and show a profit.

Which GOA collects as dividend.

It was peculiar, that the TEN members of the Commission for Utilities and Energy, summoned the director of WEB to parliament yesterday, poor thing, they wanted him to explain. Don’t we have a Minister of Energy?? He should have been called to the carpet and scolded for the LAME way this went down.

In the Netherlands, their prices went up significantly too, but the government awards a subsidy per household, a total of 300 million euro in the budget. Citizens still get the bill, they realize they wasted too much, and should economize, they have to pay the bill, but then they get a small subsidy, to help make ends meet.

GOA has no money for subsidy or relief, this will hurt many.

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July 02, 2022
Rona Coster