THIRUVANANTHAPURAM: Move to increase water tariff again has started before two years have passed since the tariff was last hiked. The water authority is planning to extort people by citing the central proposal to increase the amount by 5 percent on April 1 every year.
The central government had directed the states in 2021 to increase the rate by 5 per cent every year under the provision for additional borrowing. Kerala increased the rate by 5 percent in 2022. There was no increase in 2023 and 2024 as per the central directive. There is a reason for that. The rate was increased by one paisa per litre on February 3, 2023. The minimum rate for 10,000 litres increased from Rs 44 to Rs 144. The government did hike the rates for fear of protests if the central directive was also implemented on top of this hike.
At the same time, the water authority argues that the central position is that the Water Tariff should be increased this time if a loan is required. Taking advantage of the opportunity, the Water Authority is thinking of a hike of 10 percent adding the hike in 2024 also. It is the government that should take the final decision.
If tariff is increased by 10 percent
Higher production cost
The water authority says that the current tariff is a huge loss based on the cost of production. It costs Rs 24.82 to produce 1000 liters and it is distributed at Rs 14.4
Current rate
15,000 liters 216 rupees
20,000 liters 288 rupees
25,000 liters 366 rupees
30,000 liters 443 rupees
35,000 liters 582 rupees