Ctg Wasa looks to hike water price by 30% to 50%

Chattogram Water Supply and Sewerage Authority (Wasa) is planning for a substantial increase in water prices of both residential and non-residential sectors in one go – a 30 percent and 50 percent hike respectively.

The organisation, during its 80th board meeting held on Tuesday (16 April), decided to seek approval from the Local Government, Rural Development and Cooperatives Ministry for the price revision.

Currently, the tariff stands at Tk18 per cubic metre (1,000 litres) for residential connections and Tk37 for non-residential ones. Wasa wants to increase the rates to Tk23.50 for residential customers and Tk55.50 for non-residential consumers.

The proposition first came at an earlier board meeting held on 27 March, where discussions highlighted the escalating production costs and the need to repay loans taken for implementing development projects. A seven-member committee was also formed in the meeting headed by board member Siddharth Barua. They were asked to come up with a proposal after evaluating the matter. 

Other committee members were Engineer Mohammad Haroon, Ward Councilor Afroza Kalam, Journalist Shahid-ul-Alam, Bangladesh Medical Association Vice President Sheikh Mohammad Shafiul Azam, Institute of Diploma Engineers Bangladesh Member Zafar Ahmed and Wasa Commercial Manager Kazi Shahidul Islam are members.

Later in Tuesday's meeting, the committee recommended a 30 percent increase for residential and a 50 percent for non-residential sectors. The proposal will be first sent to the Ministry of Local Government, Rural Development and Cooperatives and final approval is to come from the Prime Minister's Office.

Chittagong Wasa Managing Director AKM Fazlullah told TBS, "Currently the production cost for every 1,000 litres of water is at least Tk32 as everything now costs more. 

Chemicals used in water purification, electricity bills, labour salaries and other factors affect the cost of water production."

"Apart from this, water supply projects have been implemented taking loans and we have already started to repay the instalments. So, keeping these issues in mind, an increase in water price has been recommended," he added.

However, consumer sentiments reflected concerns over the economic strain caused by already high living costs. They said a rise in water prices will affect everything, including house rents. Some of them even suggested Wasa can meet its rising costs by charging bills for "non-revenue" connections instead of  increasing water prices.

While talking to TBS, Manjurul Kabir, a resident of Chattashweri area, voiced his worries over the impact on household budgets if the price increases.

Chattogram Wasa currently has 78,542 residential connections and 7,767 commercial connections. Approximately 40% of Chattogram city residents are not availing Wasa services. Moreover, complaints persist regarding irregular water consumption. 

However, the organisation has been increasing the price of water almost every year. In recent times, water prices were not increased in 2021 due to the Covid 19 epidemic. But, the price was increased twice in the following year. 

The last water price hike was in August 2022. At that time, the price for residential customers was increased from Tk13 taka to Tk18 and for non-residential connections from Tk31.82 to Tk37 for every 1,000 litres.

According to Wasa data, in 2009, the price of water per unit was Tk5.41 for residential, Tk15.32 paisa for commercial. In 2014, residential was Tk6.90 and commercial was Tk19.59. 

Later, in 2020, the price for residential water was Tk12.40 and commercial was Tk30.30. Then in January 2022, it was increased to Tk13 taka for residential and Tk31.82 for commercial.