Cost-reflective tariff formula reduces water rates across the board

Wednesday, 14 August 2024 00:08 - - {{hitsCtrl.values.hits}}

The Cabinet of Ministers on Monday approved the National Water Supply and Drainage Board (NWSDB) to reduce the water tariffs based on a cost reflective tariff formula.

Accordingly, the water tariff of domestic users is to be reduced by 7%, Government hospitals by 4.5%, schools and religious places of worship by 6.3%.

Cabinet Co-Spokesman and Minister Bandula Gunawardana yesterday stated that low income domestic users (samurdhi and urban estate communities) will get a reduction of about 10%.

The NWSDB was to implement the existing water billing system from 8 January 2023 and the approval of the Cabinet of Ministers was granted at their meeting held on 15 July 2024 to implement the charges policy and matrix to review those charges. Since the Ceylon Electricity Board has deducted their electricity charges from 16 July 2024 and considering that the cost of fuel, chemicals and interest cost have been declined, the water charges can be deducted for some percentage.

Gunawardena also said that the decision was taken in line with the agreement reached with the International Monetary Fund (IMF) in implementing reforms to the State-run enterprises particularly by introducing cost reflective tariff formula.