Bond Use ‘Won’t Put Bills Up’
The head of Guernsey Water has defended the utility’s use of the States Bond.
A plan’s been agreed for the repayment of £18.6 million, which has been used on the Belle Greve wastewater project.
£9 million of the repayment has come from a loan from the bond, with the remainder funded from Guernsey Water’s cash reserves.
General Manager, Stephen Langlois, says the arrangement, which was agreed by the States last year, means they do not have to put bills up:
“We have a business plan that identifies our capital investment programme and funding requirements. We are committed to delivering our plan and improving the service we provide whilst continuing to keep our customers’ bills as low as possible.
That does rely on us achieving ongoing efficiency savings and we are progressing initiatives that will help us deliver those.
Such efficiencies can also reduce any future borrowing, which is now an important focus for our business.
That will allow greater flexibility to reinvest in services, keep bills as low as possible and, as long as they are sustainable and fair to customers, make returns to the States, particularly if we can improve performance beyond our targeted efficiencies.”