BANGLADESH

WASA proposes zone-based prices for water supply across Dhaka

In another major blow for consumer of Dhaka city’s,, the city’s water supply authority has moved for upward revision of tarrifs in 10 zones across the capital.

If the proposal by the Dhaka Water Supply and Sewerage Authority, or WASA, is approved, the lower-middle income consumers will have to pay Tk 18.75 for each thousand litre which is Tk 3.57 higher than the rate now.

Currently, WASA distributes water to two types of customers – residential and commercial. The residential consumers pay Tk 15.18 for per thousand litres of water at present. It is Tk 42 for commercial customers

In a programme on Wednesday, WASA revealed the proposed prices based on a study carried out by a committee.

The committee carried out a technical study to look into how many types of consumers there are in Dhaka and what methods are applied around the world to come up with WASA’s proposed prices.

The proposal splits Dhaka into 10 separate zones to fix the prices. The supply cost for each zone may differ.

The new price for higher-income residents, who account for 0.8 percent of WASA’s consumers, has been proposed at Tk 37.5, which is Tk 22.32 higher than the current price.

The proposed price for higher middle-income families is Tk 31.25 while middle-income families will receive supply at the production cost, Tk 25. The middle-income households make up 4 percent of WASA’s consumers.

The prices for the lower-income families were proposed at Tk 12.5 per thousand litres, which is Tk 2.68 lower than the current rate. As much as 79.4 percent of WASA consumers are from lower-income households.

For the commercial consumers, the proposed prices were raised by Tk 8 to Tk 50. The rate for the government organisations was proposed to be equal to the production cost, Tk 25.

In the programme, the authorities said the proposed prices eliminate the difference between WASA’s production costs and selling prices. So no subsidies will be required in the sector.

Meanwhile, LGRD Minister Tajul Islam on Sunday asked WASA to fix the price of water in the capital rationally.

The minister gave the direction at the result presentation ceremony of technical study conducted by Dhaka Wasa for fixing zone based water price in the city.

“Water should be supplied to low income earners and slum-dwellers at a lower price than the people living in affluent zones,” he said.

He said “There is no scope to provide water to the rich at a lower price by taking revenue from the poor.”

Not only water, service costs of other utilities like holding tax, gas, electricity should also be fixed based on different zones, the minister added.

He said no organization can run on providing subsidies. WASA will fix the water price through a board meeting. It is not right to raise the water price irrationally as well as there is no scope to not assist in paying the rationally fixed price.

“It will be investigated whether the water price is rising due to corruption and it will not be tolerated,” said Tajul Islam.

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