Water tariff hike is looking inevitable. The BWSSB is seeking revision of water tariff to meet the operational costs. The last revision of tariff was in 2014.
BWSSB – Government Agency
The Bangalore Water Supply and Sewerage Board (BWSSB) is the premier governmental agency responsible for sewage disposal and water supply to Bengaluru city. It was formed in 1964.
There are three main sewage treatment plants, which are located in the rishabavathy, Koramangala-Chellaghatta and Hebbal valleys. Two additional mini-plants have been built near Madiwala and Kempambudi.
BWSSB – Water tariff hike – grounds & Proposal
The proposal for the hike is in the rang eof 30% or more. The proposal will be sent to the State Government by the end of January. The percentage of hike is being calculated.
In the end of 2014, BWSSB had raise water tariff by 20%, since 2005. Water tariff hike revision is being a subject of political compulsions, the BWSSB in the last year draft had sought to revise tariffs every 3 years. The government rejected the draft.
BWSSB – Water Tariff hike – operational cost
The cost of pumping and supplying water from Thippagondanahalli and Cauvery is the biggest cost. The cost of pumping i.e., electricity takes up a major chunk of the revenue.
The average cost of water is approx. 28 per kilolitre where as the domestic user is charged just 7 per kilolitre. This has resulted in Rs.250 crore of deficit between expenditure and revenue.
The capital costs of all major projects taken by BWSSB will be met by the State Government or through loans. But the operational costs are to be borne by the BWSSB’s revenue system. Since 2014, the additional cost of Sewage treatment plant’s has added to the burden on the balance sheet.
BWSSB – Water Tariff hike – Conclusion
The BWSSB is spending money for the re-laying of roads and a lot of money is being spent to get water connection to the 110 villages. To boost the funds of the water boards water tariff hike is inevitable.
The BWSSB board had hike the tariff in 2014 and before that in 2005. The gap of 9 years was between 2005 and 2014. But this time the proposal is being made within 4 years.
The BWSSB makes a revenue of Rs.1200 crore every year from water bills collection.