Hyderabad residents will pay more for water and sewerage services annually
The hike comes nearly 15 years after the last revision in water tariffs, which were fixed at around 10 per kilolitre. This is a big blow to residents as Hyderabad is already battling a water supply shortfall of around 150 MGD, which is projected to widen to nearly 230 MGD. Despite the city’s growing population and rising demand, daily water supply has remained unchanged for more than a decade at around 600 MGD, against an estimated demand of 750 MGD. With the water board collecting around 110 crore a month in water charges, the 5% annual escalation could translate into an additional burden of roughly 50 crore to 60 crore a year on consumers. Officials have argued that a gradual 5% annual increase would help bridge the widening gap between revenue and expenditure without imposing the impact of a steep, one-time tariff revision on consumers.
Unlike a one-time tariff revision, the CURE Bill provides for an automatic annual increase, meaning consumers will see their water and sewerage bills rise every financial year. The financial impact would rise further in subsequent years as the compound increases.
The provision is set to affect nearly 10 lakh consumers in Greater Hyderabad, excluding around five lakh consumers who receive up to 20 kilolitres of free water every month under the existing scheme.