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Water Board’s 45% tariff hike proposal questioned

Social accountability organisations and a consumer rights group have raised alarm over the Blantyre Water Board (BWB) proposal to increase water tariffs by 45 percent, warning that the move will punish ordinary Malawians already struggling with high living costs and poor service delivery.

Consumers Association of Malawi (Cama) executive director John Kapito said in an interview the adjustment would not translate into improved services.

Tariffs for water such as a water point as the one above are expected to rise. I Nation

 “Even if they raise tariffs, nothing will change. Water boards have become fertile grounds for corruption. They will force the increase on us, and we have nothing to say because they are the only institutions providing water. What we want is real change and commitment,” he said.

Centre for Social Concern (CfSC) economic governance officer Agnes Nyirongo warned that higher tariffs would hurt residents who rely on BWB as their main source of water. “Prices of several commodities are already high. Another increase will make water unaffordable for many households. Lack of access could also create room for diseases such as cholera,” she said.

Centre for Social Accountability and Transparency (Csat) executive director Willy Kambwandira described the proposal as unfair.

“This is passing the burden of accumulated inefficiencies and operational failures directly onto citizens. Tariff adjustments should not become a default mechanism for socialising losses while insulating management and policymakers from accountability,” he argued.

BWB chief executive officer Yeremia Chihana told Parliament’s Committee on Commissions, Statutory Corporations and State Enterprises on Friday that the utility is operating at a loss because current tariffs are not cost‑reflective.

He explained that BWB spends about K4 500 to produce one cubic metre of water, but sells it at an average of K600, equivalent to six tambala per litre.

“We have challenges in terms of energy as 80 percent of our revenue is consumed by electricity payments to Escom, while salaries take up another 15 percent. That leaves us with nothing for investment,” Chihana said.

The utility currently owes Escom K22 billion in unpaid electricity bills and K5 billion to suppliers. Government institutions owe BWB K10 billion, while private institutions owe K8 billion, leaving the board in a precarious financial position.

Chihana said of the K7 billion generated monthly, 85 percent goes to electricity bills, with the remainder covering salaries. He added that BWB has installed six new pumps to improve efficiency and is exploring bottled water production, a project now 90 percent complete. The board is also considering establishing its own electricity generation plants at Walkers Ferry and Chileka to reduce costs and generate additional revenue.

Parliament’s Committee chairperson on Statutory Corporations and State Enterprises Sylvester Ayuba James said BWB’s plea for a tariff hike is justified but must be accompanied by reforms.

“The starting point is to clearly define the institution’s mandate. If it exists only to provide potable water regardless of profit, then we should stop complaining about losses. But if it must be commercially viable, then leakages and wrong procurements must be sealed,” he said.

BWB last raised tariffs in October 2023 by 50 percent. The new proposal comes amid mounting consumer frustration over poor service delivery, intermittent supply, and rising costs of living.

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