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Thiruvananthapuram
Getting the pricing right for water supplied
For long, economists have been holding the view that getting the prices right is crucial to the sustainable delivery of piped water to urban households. For the customer, the correct price of water ensures access to clean water and signals that excess consumption attracts penalty and, therefore, he or she is dissuaded from over-consumption. For the institution, it means the ability to maintain the system for efficient delivery of water as well as to be able to invest for e
xpansion of services.
Many cities charge for water and include it as part of the property tax. This is an indirect way of recovering revenue. Others charge a flat rate based on the dimension of the connecting pipe.
There is an increasing consensus, however, that block tariff makes the most sense. This is what cities such as Bangalore and Hyderabad use for their water charges. in Bangalore, consumption up to 8,000 litres attract Rs. 6 a kl and between 8,000 litres to 25,000 litres, Rs. 9 a kl. Better management is the only option for sustainable availability. Getting the price right is one aspect of water wisdom.
S. VISHWANATH
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