KWA keen on tariff hike

The utility has a monthly revenue gap of ₹35 crore

With the recent hike in electricity tariffs adding to its burden, the Kerala Water Authority (KWA) is stepping up the demand to hike the water tariffs that were last hiked in 2014.

Although the KWA is yet to formally place a tariff revision proposal before the State government, it has informed the government of the requirement.

According to KWA officials, the water utility is currently operating on a monthly revenue gap of approximately ₹35 crore. The hike in power tariffs will add another ₹5 crore to its monthly expenditure.

“The monthly electricity bill of the KWA stood at ₹23 crore even before the latest electricity charge hike. The additional burden to the KWA due to the hike will be to the tune ₹60 crore annually,” a senior KWA official said. Water Resources Minister K. Krishnankutty confirmed to The Hindu that the KWA had requested a favourable government decision on the demand to hike the water tariffs. However, the government has not taken any decision as a formal proposal for revision of tariffs is yet to be placed before it. “The KWA board has to take a decision first,” the Minister said.

At present, the KWA spends ₹2.3 for producing a litre of water.

But its revenue from it is as low as 0.4 paise. It is becoming increasingly difficult to meet the operational costs or take up new projects with the revenue generated from water sales.

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Printable version | Jun 3, 2020 12:33:08 PM |

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