PUB should set Winnipeg water, sewer rates; that doesn’t necessarily mean they’ll be lower
There are good arguments for putting Winnipeg’s water and sewer rates under the control of Manitoba’s Public Utilities Board.
Manitoba’s Public Utilities Board (PUB) should oversee Winnipeg's water and sewer rates, but that does not necessarily mean the rates will be lower. There are several compelling reasons for this. Firstly, residents should not have to depend solely on city politicians to determine their costs for an essential service they cannot avoid using.
Secondly, independent oversight would ensure a balanced consideration of both ratepayers' affordability and the utility's financial and operational health. This is especially crucial given the billions of dollars in infrastructure costs Winnipeg faces.
The call for PUB regulation has gained momentum in the municipal election, with organizations representing seniors, consumers, and low-income individuals urging candidates to support the transfer of responsibility for setting water and sewer rates to the PUB. Mayoral candidates Kevin Klein and Scott Gillingham have also made pledges to freeze rates and discuss PUB oversight, respectively.
Winnipeg is the only Manitoba municipality without PUB-regulated water and sewer rates. Given that water and sewer services are a monopoly with no provider alternatives, independent oversight is justified. Additionally, affordability is a significant concern, as water and sewer prices have been increasing well above inflation rates for years, impacting cost-struggling households.
However, there is a warning to consider when advocating for PUB regulation. The board's role is not solely to keep rates as low as possible; its mandate is to balance consumer interests with the utility's financial and operational needs. This sometimes means imposing higher rates than requested by the utility. For example, Manitoba Hydro experienced a four percent rate increase in January 2022, which was higher than the proposed 3.5 percent increase, due to concerns about prolonged droughts and the utility's financial conditions.
While PUB oversight would provide independent scrutiny of the city's practice of diverting money from the utility for general revenues, ratepayers should still be aware that the PUB may not necessarily result in lower rates. With billions of dollars in infrastructure costs on the horizon, the PUB could decide the city is asking for too much, or alternatively, not enough.
Written by urgent.news from Winnipeg Free Press's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
