A Long Overdue Hike in Bangalore’s Water Prices

The Bangalore Water Supply and Sewerage Board (BWSSB) recently hiked its water tariff, a move that was long overdue.  I am quoted in Citizen Matters on why this hike is a good move.

The hike in BWSSB’s water tariff is a welcome development that was long overdue. BWSBB has been a national leader in the professional delivery of water supply and sewerage services, and it is no accident that Bangalore has the largest number of metered water connections in the country.

Water is an increasingly scarce resource in the 21st century, and pricing it at its highest marginal cost is essential to conserving this vanishing resource. While we talk about excessive or misdirected LPG and petrol subsidies, the water subsidy that even the most prosperous Bangalore receives is much higher.

The higher price of water will also spur more people to do rainwater harvesting and efficient use of water. We must also recognise that people pay many times more for water tankers – a small increase in BWSSB tariffs could in fact reduce overall water cost for the city’s residents.
[Citizen Matters: Should Bengalureans be grateful for BWSSB’s water rates? 11 November 2014]

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