Plans to increase water bills for Nairobi residents have been shelved pending a tariff study that would establish the rationale for the review.
Increase in water bills was expected to take effect this month and would have affected Nairobi residents but Nairobi City Water and Sewerage Company (NCWSC) yesterday said it had put the plans on hold pending the completion of a study on cost. Once the study is complete the water service provider will know by how much it needs to increase its tariffs. The study would incorporate details such as supply and demand dynamics, revenue collections and customer’s ability and willingness to pay the new rates.
According to the Business Daily, NCWSC plans to increase water tariffs appear to have been hampered by a Water Services Regulatory Board (WASREB) order to water companies to first curb revenue losses from illegal connections, non-payment of bills and spillage before increasing rates.
Speaking with the Business Daily, WASREB board’s chief executive, Mr. Robert Gakubia, said, “It is only proper that water companies that cannot account for a certain percentage of their revenue do something about it first before applying to review costs.”
NCWSC last reviewed its water rates in 2009, but says electricity and labour costs have since continued to weigh down on its earnings.
Shelving of the water price review will come as a relief to Nairobi residents considering the fact that new electricity tariffs might be taking effect soon and would see electricity bills increase by up to 30%.