Water bills in Hyderabad set to increase as HMWSSB considers tariff hike after 14 years

After nearly 14 years, the Hyderabad Metropolitan Water Supply and Sewerage Board (HMWSSB) is preparing to increase water tariffs for consumers across Greater Hyderabad. This move includes the introduction of a 35 per cent sewerage cess, according to a report by The Times of India.

The last time water charges were revised was in 2011 for domestic users and in 2013 for commercial users. Currently, HMWSSB provides services to around 14 lakh customers in the city. Out of these, nearly 6 lakh households are receiving free water supply under government welfare schemes.

However, the board is facing serious financial pressure, with officials revealing a widening gap between revenue and operational costs, around 50 per cent shortfall every month.

The board has asked the Administrative Staff College of India (ASCI) to carry out a detailed study to help with the revision process. The study will review current tariff structures, evaluate the board’s income and expenses, and suggest suitable changes. Based on the report, a new pricing model will be introduced. This model will consider how much water people use, the cost of daily operations, maintaining the water infrastructure, and repaying loans.

According to Section 22 of the HMWSS Act, 1989, the board has the authority to set tariffs that are sufficient to cover all of its expenses. Officials believe the tariff increase is necessary not only to recover costs but also to enhance service quality and decrease reliance on government funding. They stated that the aim is to strike a balance between financial health and fair pricing.

"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 government for finalizing 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," TOI quoted a senior official in HMWSSB as saying.