In an unprecedented move, Dhaka Water Supply and Sewerage Authority (WASA) is set to revolutionize how residents pay for water services. Despite increasing water prices 14 times in the past 14 years, Dhaka WASA continues to face annual losses. To combat this issue, the authority plans to introduce a tier-based pricing system that considers residents’ financial conditions.
Understanding the Tier-Based Pricing Plan
The proposed system will differentiate water bills based on the size of residents’ homes. Those living in larger homes, measuring over 2500+ square feet, will face different water charges compared to those in smaller 1500+ square feet dwellings. This approach aims to align water costs more closely with individuals’ economic abilities, potentially making water bills fairer and is more manageable for lower-income households.
The Context of Dhaka WASA’s Decision
Dhaka WASA’s decision comes against a backdrop of persistent financial struggles. Despite regular price hikes, the organization has been unable to break even, let alone generate profits. The new pricing model could be a strategic move to address these financial woes while also catering to the varying economic capacities of Dhaka’s residents.
Potential Impact and Challenges
While this tier-based system may seem like a solution to Dhaka WASA’s financial troubles, it raises questions about implementation and equity. Ensuring an accurate assessment of households’ economic conditions and applying the pricing tiers fairly will be crucial. Additionally, there’s a concern about how this change might affect lower-income families and whether adequate measures will be in place to protect them from disproportionate financial burdens.
Looking Ahead
As Dhaka WASA moves forward with this plan, it will be important to monitor its impact on residents and the organization’s financial health. Transparency in the implementation process and open communication with the public will be key to gaining trust and ensuring the success of this new pricing model.For more information on Dhaka WASA’s tier-based pricing plan, click here.