The rate structure consists of Demand and Service Charges. The rate may be adjusted from time to time to reflect the actual cost of the service. Any adjustment in rates requires the certification of the Office of Utilities Regulation (OUR) and the approval of the Minister responsible for Irrigation.

 

Demand Charge

 

 The Demand Charge is a variable cost, therefore, customers will pay for

 the amount of water actually used. It is applied on a per notch basis.

 

Example: -

 

Assume for a month, a customer received 15 cu.yd./hr./day (flow rate) for 25 days.  This amount is then converted to volume: -                                              

           

            STEP 1:  

         15 cu.yd./hr/day x 24hrs x  25 days = 9,000 cubic yards                (volume)

 

        For billing  purpose this 9,000 cu.yds is then converted to cubic metres: -

           

            STEP 2:  

 

9,000 cu.yds x .765 = 6,885 cubic metres           

 

Calculation at Current Irrigation Rate

 

 There are two rates:-

 

 (a) For the first 5,508 cubic metres, the rate is 0.78 per cubic metre                                

 (b)  Any amount above 5,508 cubic metres,  the rate is $1.02 per cubic     

        metre

 

       5,508 cubic metres @ 0.78 cents         =         $4,296.24

       1,377 cubic metres @ $1.02                =         $1,404.54 

       6,885 cubic metres                             =        $5,700.78 + Service Charge

 

 Total Invoice for the month would be $5,700.78 + Service Charge

 

 

 

Service Charge

 

Whether a customer takes water or not, for example during the rainy season, the NIC must keep the Systems in a constant state of readiness to serve. The cost incurred in doing so constitutes the Service Charge.

 

The Service Charge is therefore based on NIC’s ability to serve its customers and it is applied on a per notch basis. Once the necessary infrastructure is in place to supply the contracted acreage, the Service Charge will be applied on the full contracted acreage whether or not the total acreage is being utilized.

 

 

Service Charge Calculations

 

Rate 1                     1-5 Acres @ $12.11 per acre/month

 

Rate 2                     Over 5 Acres - 10 Acres @ $24.23 per acre/month

 

Rate 3                     Over  10 Acres  @ $30.29 per acre/month

 

Examples:-

 

1.        Total Acreage—1

 

      1 Acre                              1 X 12.11                =                12.11

      Total Service Charge for 1 Acre                   =              $12.11 per month

 

2.        Total Acreage—23

 

       First 5 Acres                  5 X 12.11                =               60.55

       Next 5 Acres                  5 X 24.23                =              121.15    

       Remaining 13 Acres      13 X 30.29                =              393.77

       Total Service Charge for 23 Acres             =        $575.47 per month

 

3.        Total Acreage—150

 

      First 5 Acres                   5 X 12.11                =                    60.55

      Next 5 Acres                   5 X 24.23                =                  121.15

      Remaining 140 Acres   140 X 30.29                 =                 4,240.60

      Total Service Charge for 150 Acres             =                $4,422.30 per month