Water bills in Hyderabad set to shoot up as water board mulls tariff overhaul

Hyderabad: If you’ve been taking the monsoon rains as a cue to waste water, it’s time to rethink. The Hyderabad Metropolitan Water Supply and Sewerage Board (HMWSSB) is planning a significant hike in water tariffs after almost 14 years, including the imposition of a 35% sewerage cess, which could dent household budgets.The last revision for domestic users was in 2011, while commercial tariffs were last increased in 2013. Currently, HMWSSB serves nearly 14 lakh consumers across Greater Hyderabad, of which about 6 lakh households receive free water under government schemes.The move comes on the heels of similar tariff hikes by water boards in Chennai and Bengaluru. To guide its decision, HMWSSB has roped in the Administrative Staff College of India (ASCI) to conduct a comprehensive review of tariff structures and assess revenue deficits.

Based on ASCI’s recommendations, a new tariff framework will be proposed.The revised rates will factor in consumption patterns, operational costs, infrastructure upkeep, and debt servicing. Under Section 22 of the HMWSS Act, 1989, the board is empowered to levy tariffs sufficient to meet these obligations.Water board officials say the tariff revision is crucial, citing a 50% gap between revenue and expenditure.

The tariff enhancement is essential as it will help the board improve its service quality, maintain infrastructure, and reduce dependency on govt subsidies, they said.“It will take ASCI about a month to complete its assessment. Once we have their findings, we shall consult our board of directors before submitting the report to the state govt for finalising the revised rates. Over the past 15 years, while electricity charges have seen three hikes and PRC has undergone three revisions for staff members, the water tariffs have remained unchanged.

We aim to ensure the revised charges remain reasonable while helping achieve financial sustainability,” said a senior official in HMWSSB.According to the water board, operations and maintenance of its assets have become a burden as there is a monthly net revenue deficit of Rs 130 crore, apart from an accumulated revenue deficit. It has become difficult to effectively maintain the system with low tariff rates, with an increasing incidence of consumer-related concerns requiring major investments and improvements.Restructuring of the existing tariff structure would be approved so that the existing common rates of different categories will be replaced by a differential category-wise tariff structure for each category, i.e., domestic, commercial, and industrial, with differential structures for bulk connections and multi-storied buildings.