KOROR, Palau — The Olbiil Era Kelulau (OEK) has vetoed a sharp increase in water and wastewater rates set to take effect on Feb. 1, 2025, citing concerns over affordability and economic impact.
The new rates, approved by the Palau Energy and Water Administration (PEWA) and implemented by the Palau Public Utilities Corporation (PPUC), would have raised residential water rates by 24.5%, from $6.75 to $8.37 per 1,000 gallons. Commercial rates would have surged by 146%, from $6.72 to $16.53 per 1,000 gallons.
Wastewater rates for residential customers would have increased by 81%, from $6.58 to $11.92 per 1,000 gallons, while commercial rates would have jumped 110%, from $6.58 to $13.80 per 1,000 gallons.
Sen. Rubekai Inabo criticized the steep hikes, saying that utility rate adjustments are typically implemented in gradual increments to allow consumers time to adapt. “This nearly doubling of rates will be difficult for everyone, especially as we continue recovering from the COVID-19 pandemic,” she said.
The Senate passed Joint Resolution 12-2, exercising its authority under Title 6, Section 133 of the Palau National Code, which allows the legislature to nullify rules adopted by an agency within 120 days. The resolution declared the rate hikes “exorbitant and too dramatic,” arguing they would place a heavy burden on consumers and hinder economic stability.
Sen. Secilil Eldebechel acknowledged PPUC’s need to achieve full cost recovery but agreed with colleagues that the sudden rate increases could have harmful consequences. “The impact on the people must be considered,” he said.
While PPUC held public hearings on the proposed rates, attendance was reportedly low. The agency has not yet responded to the OEK resolution, and some speculate it may proceed with implementing the new rates next week despite legislative opposition. (By: L.N. Reklai)