City-dwellers will have to pay 5.0 per cent higher price plus VAT for water usages from August as Dhaka Water Supply and Sewerage Authority (DWASA) has again raised its tariffs.
The bill per unit (1,000 litres) of water will be Tk 10.50 for residential users from the existing rate of Tk 10 while commercial rate will climb a little higher to Tk 33.60 from Tk 32.
Added up to the tariffs will be value-added tax (VAT).
With the latest hike, the government utility-service provider has enhanced the water tariffs thrice since July 2016.   
But questions have cropped up as to whether the hikes are taking place in accordance with the existing law, as rights groups stood against.  
According to DWASA, the board approved the new price hike in May. Under the law, the board can't hike price more than once a year–and the increase should not be more than 5.0 per cent.  
The Consumers Association of Bangladesh (CAB), however, termed the water-tariff hikes 'arbitrary'.  
DWASA does not have any accountability to the people, said the rights group.
The water authority for the capital city has its own logic.   "This is a yearly tariff hike. We don't call it tariff hike, it is actually adjustment with inflation and expenditure," Dhaka WASA Managing Director Taqsem A Khan told The Financial Express.
Last year, WASA increased per-unit water price 22 per cent for a residential client. Before July 2016, the price per unit was Tk 7.71. After the yearly 5.0 per cent rise in July, it cost Tk 8.49. But in November the WASA raised the price by 17 per cent to Tk 10.
Is it going to be a repetition of last year's?
To this question Mr Khan said the tariff hikes were as per the Dhaka WASA Act 1996. WASA board has power to make 5.0 per cent hike.
"If we need more tariff hike in a year, we apply to the ministry and the ministry approves it if it is rational. Thus, last year water tariff was hiked 17 per cent additional to 5.0 per cent regular increase," the MD said.
And if they need, he hastened to add, they would apply again to the ministry this year as per law.
He said the inflation is 7.0 per cent but WASA hiked only 5.0 per cent, so it is actually a 2.0 per cent reduction.
According to the Bangladesh Bureau of Statistics (BBS)), the 12-month average inflation in the month of March, 2017 was 5.39 per cent.
Khan also pointed out that the production cost of per-unit water is Tk15 but they charge only Tk10.50. The rest comes from indirect subsidy from government.
Contacted, member of Dhaka WASA Board and President of Central Executive Committee of the Institution of Diploma Engineers AKMA Hamid said the 5.0 per cent hike was discussed at the board meeting and it was rational to adjust inflation.
Taqsem A Khan said they were setting up new pipelines, implementing four mega- projects, replacing old pipelines and the system loss would come down to seven or eight per cent soon.
Chairman of the Consumers Association of Bangladesh Ghulam Rahman termed the price hike arbitrary.
"Such a utility service provider can't hike price at their board. There must be public hearing for the rationale of tariff hike," he said.
He said the WASA Act should be changed to make pro-people. The DWASA does not have any accountability to the people.
The WASA Act 1996 allows them to raise water tariffs at their sweet will. The law does not have any consumer-protection clause.
The CAB chief also demanded the formation of a committee or authority, like the ones for electricity and gas, to adjust the price of water in a transparent and accountable way.
"The price hike will affect the people of lower-and middle-income groups," said Mr Ghulam, demanding a logical review of the pricing.
When contacted, a senior official of the Ministry of Local Govt., Rural Development & Co-Operatives said the WASA has been empowered to revise the tariffs in accordance with the law.
"I am not aware of the latest tariff hike. I have to see it," the official said when asked about the latest hike.
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Source: The Financial Express