The bi-monthly water charges to be paid by consumers in Kerala are set to go up with the state government giving nod to the new tariff structure of the Kerala Water Authority (KWA). But neither the notices threatening disconnection nor periodic amnesty schemes have helped KWA recoup the arrears totalling around Rs 1,590 crore. The water charges have been hiked by one paisa per litre across all categories of consumers, with effect from February 3, 2023, hoping to offset at least part of their losses.
The list of major defaulters, as per a list available on their website, includes the Kerala Legislative Assembly (Niyamasabha), which owes them Rs 93 lakh as arrears. But the amount appears paltry when compared to dues of major defaulters. In the list of defaulters that owe between Rs 50 lakh to Rs 1 crore to the KWA are several government offices and educational institutions. The amount due from state government connections (dues over Rs 10,000) alone add up to Rs 476.5 crore.
Niyamasabha secretary AM Basheer told TNM that he is unaware how the KWA arrived at the amount of Rs 93 lakh. “The Niyamasabha has multiple water connections, meaning there are multiple metres, some of which are faulty. Some of the connections in the building are old, while others were added later. A few among them are not in use,” he said. A meeting of the secretary and the KWA Managing Director has been called to sort out the issue. “The bill amount will be discussed in the meeting, and necessary steps will be taken,” he said.
In a response submitted to the state Assembly in December 2022, for a question to be answered by the Minister for Water Resources, the KWA said it has been running a revenue deficit since the time of its inception. Besides the grants received from the government for overcoming the revenue deficit, the main revenue source of the KWA is water charge levied on consumers. The cost of storage, purification, and distribution of a kilolitre (1000 litres) of water is Rs 22.85, whereas the average charge levied on consumers for the same is Rs 10.92. This means that the KWA incurs a loss of Rs 11.93 per kilolitre. “Supplying water to the public at rates lower than the expenses incurred for water purification and distribution affects the finances of the KWA. Yearly increases in electricity charges, maintenance costs, salaries, pensions, and loan repayments do not see a corresponding increase in water charges,” the KWA said.
In 2021-22, KWA collections touched 86.32% and 85.27% respectively of the domestic and industrial demands. However, it could collect only 53.43% of the total amount of non-domestic demand.
TNM also spoke to Subash Kumar, accounts officer at KWA, about the hike in charges and the collection of arrears. “Water charges were last hiked in October 2014, and before that, in 2008. The one paisa per litre hike is only a timely increase, and has now come after a gap of eight years,” he said.
He said that the KWA’s amnesty scheme for water charge defaulters had offered several relaxations including permission to pay off the dues in six instalments. “From January 1 to March 31, war rooms will function in all KWA offices to ensure that all arrears are collected. As part of the war room, notices will be issued to defaulting customers, and KWA employees will visit them to request payment. Further defaulters will be dealt with steps including disconnecting their water connection. The total dues amount to Rs 1,590 cr,” Subash said. He said that the KWA had disconnected the water to the Pathanamthitta civil station after arrears were not paid. “After we disconnected, they agreed to pay the amount in instalments. The water supply was reconnected upon receiving the first instalment,” he said.
On being asked why the KWA allowed for dues worth crores to accumulate, he said that the KWA was after all, only a government institution and therefore had limitations. “Around 75% of all defaulters are government offices or government-run institutions. When they are sent notices, they state reasons like lack of funds or some such difficulties. This is true about all institutions. KWA, for instance, owes a large amount to the Kerala State Electricity Board,” Subash said.
As per the revised tariff, domestic consumers using up to 5,000 litres will be charged at Rs 14.41 per kilolitre and would have to pay a minimum of Rs 72.05. Those consuming between 5,000 to 10,000 litres will have to pay Rs 72.05 minimum and Rs 14.41 per kilo litre in excess of 5,000 litres. For usage between 10,000 to 15,000 litres, consumers should pay Rs 144.10 plus Rs 15.51 per kilo litre in excess of 10,000 litres.
While there is no fixed charge for domestic consumption, non-domestic consumers should pay Rs 55.13 and industrial consumers should pay Rs 165.38 in fixed charges. However, apartments will have to pay fixed charges of Rs 55.13 per dwelling unit. No water charges will be collected from BPL families who consume up to 15,000 litres per month. In 2022-23, KWA is expecting a revenue of Rs 1283.83 crore and an expenditure of Rs 1599.23 cr, which includes salary of staff (Rs691.35 cr) and pension (Rs 691.35 cr).