BWSSB proposes revision of water rates, reaches out to Bengaluru MPs, MLAs

The BWSSB supplies drinking water to Bengaluru, sourced from the Cauvery River over 100 kilometre away. As an autonomous body, the board relies solely on revenue generated from water tariffs. However, the existing rates, last revised in 2014, are reportedly proving inadequate to cover escalating operational expenses. Manohar in his letter stated that the board incurs a monthly expenditure of Rs 170 crore with a monthly revenue of Rs 129 crore, resulting in a deficit of Rs 41 crore.

Further, with the recent inauguration of the Cauvery Stage V project, aimed at providing water to 110 villages, operational costs have surged by an additional Rs 40 crore per month. This has pushed BWSSB’s total monthly expenditure to Rs 210 crore, widening the monthly deficit to Rs 81 crore, Manohar highlighted.

The BWSSB chairman outlined multiple reasons for the financial strain. He stated that the electricity costs have increased by 107.3 per cent between November 2014 and March 2024; the operating expenses have increased by 122.5 per cent during the same period and the salary and pension costs have increased by 61.3 per cent over the last decade. The annual revenue shortfall is projected at Rs 972 crore, potentially escalating to Rs 4,860 crore over the next five years, according to BWSSB estimates.

BWSSB officials warned that failure to revise water tariffs could jeopardise the day-to-day operations of maintenance and repairs, adoption of smart water management systems and continuous water supply services, delay the implementation of new water and sewerage projects essential for a growing city, and make it difficult for the board to secure loans and grants from international financial institutions as a result of poor financial health.

“The BWSSB has also implemented measures to reduce unaccounted-for water and increase water connections. However, these efforts have not bridged the revenue-expenditure gap, necessitating a revision of water rates to sustain operations and improve services,” Manohar said. He added, “A growing city needs world-class facilities. To achieve this, we must implement high technology and innovative solutions for water and sewerage services. A rate revision is necessary to maintain the BWSSB’s ability to serve Bengaluru, a city renowned globally for its growth and dynamism.”

He also stated that Deputy Chief Minister D K Shivakumar is expected to convene a meeting in the coming days to discuss the rate revision proposal.

In 2014, BWSSB had revised tariffs to Rs 7/kilolitre (kl) in the minimum slab and to Rs 45/kl in the highest slab for domestic consumers. The rates were respectively Rs 6/kl and Rs 36/kl before. For non-domestic consumers, the current tariffs are Rs 50/kl in the minimum slab and Rs 87/kl in the maximum slab. They were Rs 36/kl and Rs 60/kl, respectively, before. The fixed minimum charge for domestic consumers is currently Rs 56 per month. For non-domestic consumers, the fixed minimum charge is Rs 500.