Dhaka Water Supply and Sewerage Authority (WASA) is considering a significant shift in its water pricing strategy by proposing five different price categories based on consumer income. After witnessing 14 price hikes in the past 14 years, the authority is now exploring a pricing model that ranges from a 24% to 147% increase, depending on consumer categories. The proposed changes aim to align water prices more closely with the financial capacity of consumers, impacting their expenditures across various income levels.
Dhaka WASA claims that the current water prices are lower than the production cost, with the government subsidizing Tk 10 for every 1000 liters of water. To address this, the authority is advocating for an adjustment in water prices, a move that could lead to a reduction in government subsidies. The proposed pricing structure based on consumer income is part of Dhaka WASA’s ongoing efforts to rationalize its tariff system.
However, critics, including urban planners and some WASA officials, argue that the proposed price adjustments may be an attempt to shift the burden of the authority’s mismanagement and irregularities onto the public. While Dhaka WASA contends that its water production costs are high, critics challenge this claim, pointing out that the agency is implementing projects using high-interest loans, placing the debt burden on consumers.
Several factors contribute to the skepticism surrounding Dhaka WASA’s proposed price adjustments. The authority’s projects, funded by foreign loans, have faced slow implementation, resulting in rising project costs. Additionally, mismanagement and system losses have led to inefficiencies, contributing to the need for higher water prices. Critics argue that focusing on reducing system losses and enhancing operational efficiency could negate the necessity for frequent price hikes.
The proposed new water prices are categorized into five segments: low income, lower middle class, middle class, upper middle class, and upper class. The adjustments take into account factors such as mouza rate, home tax, and monthly income. Despite the proposed changes, concerns linger about the transparency of Dhaka WASA and the potential impact on consumers, especially those in the middle and lower-middle-income brackets.
As the debate over water pricing continues, Dhaka WASA aims to finalize the new pricing structure in consultation with stakeholders, including beneficiaries and consumers. The proposed adjustments, if implemented, could reshape the water tariff landscape in Dhaka and potentially influence water pricing strategies in other regions.
