Price of water set to jump

Ministry of Water and Sanitation Principal Secretary Elias Chimulambe says government has approved new water tariffs for Blantyre Water Board (BWB) and is considering applications from other water utilities.

In an interview yesterday, he said currently, they do not have plans to effect tariff adjustment for the other boards.

He said: “They may have applied, but tariff adjustment depends on a number of factors, including production costs.

“For example, in Blantyre we have adjusted by considering low-income people. So, we still need to look at the applications.”

Water Services Association of Malawi (Wasama) president Francis Munthali, who is also Northern Region Water Board (NRWB) chief executive officer, said they expect that government will be through with the vetting process by May this year.

“NRWB has applied based on its own reasons for seeking tariff structure adjustment. But yes, the other water boards have also applied for revision,” he said.

In a notice dated April 1 2024 and published on its website, BWB has announced its gazetted new tariff structure which is part of its 2020/25 strategic plan and turnaround strategy.

It includes water supplied for domestic use to institutions, for commercial purposes, and for industrial use, but has exempted water supplied from communal points or kiosks.

“The new tariff structure is applicable to all customer categories for the sustainability of the board’s operations and improved service delivery.

“The board is committed to delivering reliable and safe potable water to residents of Blantyre City and surrounding areas,” reads the statement.

For the first 5 000 litres of water supplied per month for domestic purposes, the new tariff is K1.59 from K1.44 per litre raised in October 2023. In excess of 40 000 litres, the cost is K2.22 up from K2.01 per litre.

And for the first 10 000 litres of water supplied per month for industrial use, the new charge is K6.62, an increase from 5.98 per litre. If it exceeds K40 000 litres, the new tariff is K8.28, up from K7.48 per litre.

In an interview yesterday, BWB chief executive officer Robert Hanjahanja said the adjustment happened in the middle of the cholera outbreak and while the country was healing from Cyclone Freddy; hence, sparing the water supplied from communal points which normally benefits poor urban people in Blantyre.

“Most residents will tell you that there has been a significant improvement in the way we are providing services.

“The Nation recently carried an article where we were announcing a $150 million [about K260 billion] project for BWB aimed at improving service delivery. We are now in the middle of that project. There are good times ahead for BWB.”

Reacting to the development, Consumers Association of Malawi executive director John Kapito said even with upward adjustment of tariffs, all that people get in return is poor service delivery.

He urged BWB to embrace change in its operations.

“It would be fair if they said we will be getting your money, and that will translate into better services. We want to see real change and commitment,” said Kapito.

In its approved tariff framework, BWB announced a 40 percent increase from June 1 2023 and a further adjustment of 50 percent on October 1 2023 in line with given approvals.

The board said there would be further 10 percent adjustments in year two and three with all adjustments being subject to annual socio-economic surveys to determine customers’ ability to pay for the water service.

BWB effected the increase along with the country’s four other water boards, who previously argued that the tariff then was below full cost recovery.