Proposed water price hike totally unacceptable

Hard on the heels of the price hikes of diesel and kerosene in last November, and amid continuing rise in edible oil prices, the price of water in the capital is also set to see a sharp rise after Dhaka Wasa proposed a 20 percent hike in tariffs. If the government approves it, it would cause a big dent on the residents' wallet, not to mention the domino effect it may have on the prices of kitchen market commodities, especially with the month of Ramadan approaching. At a time when people are already at their wit's end trying to cope with the pandemic-induced economic pain and adjust their budget to erratic market behaviour, the Wasa proposal comes as a big shock indeed.

The proposal for increasing water price by 20 percent is not comprehensible, as technically, Dhaka Wasa can increase the tariff by 5 percent each year as per Section 22 of the Wasa Act, 1996. But in his defence, Dhaka Wasa's managing director said that a 5 percent hike is not "sufficient" as it cannot match the production cost even with the government's subsidy of Tk 10 per litre of water. As per the new proposal, the price of each unit (1,000 litres) of water should be Tk 21 for residential use and Tk 55 for commercial use, whereas the current prices are Tk 15.18 and Tk 42 respectively. As well as bringing down subsidies, the other reason cited for the proposed hike is the need to pay back Wasa's foreign loans with interest.

Unfortunately, while Wasa officials seem keen to enhance water tariff at every opportunity—which they have done twice in the last two years and 15 times in the last 13 years—they have never shown much enthusiasm in fulfilling their pledge of providing clean, safe drinking water to the vast majority of the capital's over two crore residents. Seldom do they feel the need to answer for their failure to do so, while residents continue to suffer the brunt of their lack of competence, vision and accountability. The proposal for a water price hike is especially troubling with all the talk of raising the prices of electricity, gas and fertilisers by March.

The combined effect of all these price hikes coming in quick succession would be unimaginable. The pandemic has already caused immeasurable suffering and hardship to the people, pushing a vast number of them beyond the poverty line. Unemployment has reached an alarming level. People are also struggling with the rising healthcare costs. This is no time to compound their suffering. We urge the government to see the bigger picture here and not entertain the misguided Dhaka Wasa proposal. The government should also find alternative ways to fund or manage its subsidies.