GWI forced to pay millions for billing software -almost every job was contracted out in 2015

Feb 23, 2018 News

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Management of the state-owned Guyana Water Inc. (GWI) is claiming that they inherited “an albatross” of billing software that is costing the company millions with little legroom for adjustments.
In fact, to just make an adjustment to GWI’s systems to account for the Value Added Tax (VAT), the company was forced to fork out over $18M recently.
Addressing questions Wednesday during a public hearing into an application for an across the board increase in rates and tariffs, GWI’s Managing Director, Dr. Richard Van West Charles, disclosed that shortly after taking up his appointment in late 2015, he came face to face with billing software which tied the company down.
“We have an albatross around our neck…they charged us US$100,000…we can’t make a move without touching base. It is holding us back from adjusting our billings; we can’t even handle the introduction of VAT ((Value Added Tax).”
The VAT for water was introduced by Government for 2017 but until now, more than a year later, GWI has difficulties in merging the charge to the current billing, the official said.
There is an annual licence fee for the Progress Software, one of the products being used by GWI.  This amounts to the equivalent of US$24,000, it was disclosed.
Then there is the annual HiAffinity Support Licence fee of US$71,000.  This is the billing software. This support gives GWI 10 free days of activity support…meaning, if there is need for them to do any fixes, etc, it is charged to the 10 free days.
Any other support required outside of the contract is charged at a flat rate of US$ 1,200 per day.
This was highly evident from the recent charge by the contractor to introduce systems to accommodate the VAT charge. GWI has been forced to pay over US$87,000 so far.
“Draconian” was how the contract was described by an upset Van West Charles.
GWI, the Managing Director said, has started looking at other options to that 2008-installed software, including what is available in the US. It will more than likely be similar software to the one used by the Guyana Power and Light Inc. (GPL), the official said.
During the hearing at Cara Lodge, the Managing Director was also questioned by officials from the Public Utilities Commission (PUC), the regulator, and the consumers’ representatives who are largely against any increases until GWI can produce up-to-date financials.
Questioned about its increasing travelling bills, the Managing Director made it clear that there has been an increase in training overseas in recent months.
In fact, in 2015, while there was a travelling bill for $1.5M, this jumped to $14M in 2016 but went to $10M last year.
There are more workshops that had been redounding in benefits for the company, the official disclosed.
The Managing Director also painted a picture of a dismal GWI in 2015, when the Coalition Government took over. It was emphasised that new management was installed. Almost everything was contracted out, with not even a crane owned by GWI. “There was very little in terms of in-house capabilities”.
GWI, he said, is now moving to acquire its own rig, rebuild its workshop and continue to work with low-cost technologies for drilling wells.
With regards to customer service, GWI is acknowledging that there is still a far way to go.
However, online systems allow for consumers to take photos of their meters to assist with meter reading and even report water main breaks via a special app. The latter is being monitored for response time.
Warning that GWI needs $2.2B coming from the proposed increases to carry out needed maintenance and raise the quality of water, Dr. Van West Charles noted that any slippages will result in “brown water”.
With GWI also charged with maintaining the city’s aging sewage systems, Van West Charles in making his case for the increases, insisted that sanitary workers have a right to decent working conditions.
The company, in addition to wanting to stabilize power at its wells by placing generators and other forms of alternative energy for help provide 24-hour service, disclosed that it is moving to introduce facilities for sanitation workers to shower and wash their clothes.
The increases will come in to deal with the high iron content of water in some parts of the country, which causes the water to run red, and for the continued cleaning of tanks at schools which are now being tested regularly to ensure water quality meet international standards.
GWI is to appear again before the PUC on March 14.
They are coming under intense scrutiny with the company expected to produce its financials to help make its case for the increases.
Among other things, GWI wants to introduce a $500 fixed charge for all categories of consumers with waivers for pensioners.
The new charges will see stiff penalties for theft. The last tariff increase was in 2005.

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