Dhaka Water Supply and Sewerage Authority (WASA) is gearing up for the introduction of an area-based billing system in July, with plans to raise water prices as part of a routine readjustment. The Managing Director, Taqsem A Khan, unveiled these upcoming changes during a meeting with the Dhaka Utility Reporters Association in the capital on Sunday.
In a significant shift, Taqsem emphasized that the government would discontinue subsidies for water, stating, “Dhaka WASA can never progress or sustain itself with subsidies. The readjustment is essential to move WASA towards breaking even from losses, necessitating the removal of subsidies.”
Highlighting the disparity in subsidy distribution, Taqsem pointed out that both rich and poor households currently enjoy the same benefits despite differences in income. He illustrated the point by comparing families in different areas, emphasizing that a uniform water rate does not justify providing government subsidies to affluent individuals.
To facilitate the new billing system, Taqsem mentioned ongoing efforts to develop software based on area and capacity, with six to seven thresholds expected in the system. However, he cautioned that the implementation might be delayed until July, and there could be a further increase in water prices before the new system’s launch.
Dhaka WASA had previously raised water prices by 5 percent in September 2022, setting the rate at Tk 15.18 per 1,000 litres for residential users and Tk 42 per 1,000 litres for commercial connections. At that time, the authority justified the increase by citing the production cost of 1,000 litres of water, which stood at Tk 25.