AGO looking into water price hikes

The Attorney General’s Office is conducting an investigation on the recent water price increases to determine whether or not water companies in the CNMI conspired to reach that decision.

CNMI consumer counsel Brian Caldwell confirmed that a probe is actually ongoing, although no formal complaint has been lodged with his office.

The AGO initiated the investigation amid reports that several water companies decided to increase water prices after an alleged meeting at a Garapan restaurant sometime last month.

Caldwell said his office is looking at the possibility that water companies violated consumer laws, particularly the Unfair Business Practices Act and the Consumer Protection Act, as well as federal anti-trust laws. He refused to elaborate until the probe is concluded.

Sometime last month, several water companies disclosed their respective decisions to hike prices for 5-gallon bottled water. Among these companies were Saipan Ice, S.T.a.R. Water, Marianas Ice and Water Company, and JG Sablan Ice & Water.

Before disclosing the increases, water company representatives allegedly met at the Canton Restaurant in Garapan, according to an official of one water company.

An accounting staff of another water company confirmed that the meeting took place and that plans to hike water prices were part of the agenda. The staff said, however, that no agreement was reached among the water company representatives and that each firm retained the prerogative to adjust their prices.

The staff cited the increase in production cost as reason behind JG Sablan’s decision to increase water prices. Contributory factors, the staff said, included increases in the costs of fuel, reverse osmosis equipment maintenance, freight, and supplies.

JG Sablan Ice & Water said it would double the store price of bottled water to $2. It also disclosed plans to raise the product’s delivery price to $2.50.

Marianas Ice and Water raised the price of bottled water from a dollar to $1.50, while delivery price increased from $2 to $2.50.

S.T.a.R. water doubled the store price of its 5-gallon bottled water to $2—as well as delivery price to retail stores at the same rate. It disclosed plans to increase delivery price to $2.50.

The company attributed the cost to higher fuel costs, the upsurge in Japan prices of supplies necessary to maintain the company’s reverse osmosis equipment, and increased airfreight costs. S.T.a.R. also mentioned higher cost of compliance with government agency regulations.

Saipan Ice also adjusted the retail store price of 5-gallon bottled water from $1 to $2 and disclosed plans to hike delivery prices to a maximum of $3. The company partly attributed the price increases to higher production and freight costs due to the series of fuel price increases.