Chattogram Wasa plans 5% water tariff hike, seeks public opinion before decision

The Chattogram Water Supply and Sewerage Authority (Wasa) is considering raising water tariffs by 5% for both residential and commercial consumers, but has deferred a decision to seek feedback from customers and stakeholders.

The proposal, submitted by the utility's revenue department, was placed before a board meeting at Wasa headquarters yesterday (1 August). Instead of approving it immediately, the board formed a four-member body to consult consumers, professionals and representatives from different sectors before submitting recommendations.

The committee will be led by Deputy Managing Director Engineer Vishnu Kumar Sarker, with Chief Revenue Officer Ruman Dey and board members Begum Syeda Zerin Hossain and Russell Mia as members. 

Meanwhile, the Consumers Association of Bangladesh has demanded that the proposal be withdrawn, arguing that increasing tariffs without improving service quality, ensuring reliable water supply and addressing long-standing mismanagement is unreasonable.

According to Wasa officials, existing regulations allow the board to raise water tariffs by up to 5% annually without government approval. Any increase beyond that requires approval from the government.

Officials said production costs have risen significantly as the utility shifts from groundwater extraction to treating river water to reduce dependence on deep tube wells. They also cited financial pressure from repaying foreign loans used to finance large infrastructure projects. The proposed increase is intended to help offset higher production costs and meet debt repayment obligations.

Chattogram Wasa Managing Director Engineer Salim Md Jane Alam told this newspaper, "The board will make a final decision only after reviewing the committee's recommendations based on consultations with consumers and professionals."

Currently, residential customers pay Tk18 per 1,000 litres of water, while non-residential users pay Tk37.

The facility has 104,511 customer connections, nearly 93% of which are residential, meaning any increase would primarily affect household consumers.

According to data, residential water tariffs have risen from Tk5.41 per 1,000 litres in 2009 to Tk18 at present. Commercial tariffs have increased from Tk15.32 to Tk37 over the same period.

In a statement issued today (2 August), the consumers association said the proposed hike would further burden consumers already struggling with higher prices of essential goods and services, arguing that improving administrative efficiency, reducing waste and eliminating irregularities would remove the need for higher tariffs.

It also alleged that Chattogram Wasa has failed to meet the city's water demand despite operating for 63 years. It claimed that nearly 30% of the city still lacks Wasa water coverage, while many consumers continue to face dirty and foul-smelling water, supply shortages and pipeline leakages.

Calling the proposed tariff increase "against public interest," the consumers association urged the utility to improve its services before raising water prices.