July 02, Colombo (LNW): Water consumers are unlikely to face an increase in tariffs during the second half of the year, according to Minister of Housing, Construction and Water Supply, Susil Ranasinghe.
The Minister indicated that a review of water charges had found no compelling reason to introduce a price revision, as the National Water Supply and Drainage Board has managed to keep its operating costs largely under control over the past six months.
He explained that expenditure on water purification and treatment had not risen significantly during the first half of the year, allowing the utility to maintain existing tariff levels without placing an additional burden on consumers.
Although water tariffs are generally assessed every six months, no adjustment was made during the January to June period. Responding to questions about whether charges would be revised between July and December, the Minister said the financial impact of recent cost increases had been relatively modest.
Ranasinghe noted that the most notable expense was the recent 18 per cent increase in electricity tariffs. However, he pointed out that electricity represents only around 12 per cent of the overall cost of supplying treated water, limiting its effect on the Board’s finances. He also observed that fluctuations in fuel prices had had only a marginal impact on water treatment operations.
According to the Minister, the increase in electricity costs translates to an estimated additional expense of approximately Rs. 2.50 per unit of water, a figure he described as manageable within the Board’s existing cost structure.
In view of the limited rise in operational expenditure, the Minister said the Government does not expect to revise water tariffs during the remainder of the year, although the situation will continue to be monitored as part of the regular review process.