Court in line with Aqualectra

November 04, 2008 3:51 AM

The Court of First Instance gave an accelerated judgment yesterday afternoon in the case of utility company Aqualectra against the island government. The Court, which would originally rule on November 4, now gives parties the opportunity to come to a settlement. Parties have to notify the Court Thursday at the latest whether they have solved the matter together. If the two parties do not reach a consensus before the deadline, the final judgment will follow on Monday, November 10.

The judicial evaluation of the arguments and relevant documents show that Aqualectra has “won the case”. For instance, the judge follows the argument that Aqualectra faces internationally highly increased fuel prices, not caused through its own actions. The Executive Council cannot prove either, as the judge believes, that Aqualectra can reduce its non-revenue water more quickly than it already does – on the contrary: “The continuous liquidity deficit on account of the rates lagging behind will certainly not contribute to it”, says the judge to the Executive Council.

The judge repeatedly points out that there are grounds to assume that, in reason, Aqualectra can keep the insular territory to the guarantee by virtue of a decree of November 8, 2002, that the government will always adjust Aqualectra’s rates in such a way that the utility company is given the opportunity to achieve a profit of at least 8 percent.
It is expected that the matter will be settled with a ruling on November 10, notably in favor of Aqualectra.

(Source: National newspaper Amigoe)

1 November, 2008

Aqualectra was represented by Mayesi Hammoud of the law firm of VanEps Kunneman VanDoorne and the island government bylaw firm HBN Law.