We have not increased water prices

OPINION

By John F. Sekabira

There is a social media post claiming that National Water and Sewerage Corporation (NWSC) has increased the price of water by sh1,200 per unit.

It is misleading and not factual. It has created unnecessary panic among customers. Despite the cost of all water production services going up, we have not increased the tariffs. A unit of water (domestic rate) is sh4,100. A unit is an equivalent of 50 jerrycans of 20 litre capacity.

The only thing we have done as required by law is tariff indexation, which helps NWSC customers get quality and reliable services.

Statutory Instrument No. 50 of December 7, 2018 stipulates that the NWSC water and sewerage rates will be subjected to annual indexation against domestic price index, exchange rate, foreign price index and electricity tariff. During the COVID-19, NWSC deferred indexation for three consecutive financial years as follows FY2019/2020, FY2020/2021 and FY2021/2022.

Effective July 1, 2023 the NWSC tariff has been indexed by 10% (5% deferred indexation and 5% annual indexation).

Indexation is not a tariff increase, but an adjustment to protect the real value of the tariff from being eroded by the general price level in the economy, exchange rate, foreign price index and electricity tariff.

This is to enable the tariff to maintain the same purchasing power so as to cover the cost of inputs required to provide the same level of service. Also, note that the 10% indexation does not affect the tariff for public taps and the industrial rate. A jerrycan of water at a public stand pipe is sh25, Domestic sh97, Govt/institution sh98, commercial sh116, commercial > 1,500m3 per m3 at sh93, industrial at sh116 and industrial > 2,500 per m3 at sh59.

All prices are VAT inclusive. Water is still one of the cheapest commodities in Uganda. People not connected to the NWSC grid pay more money to access a jerrycan of water. Paying water bills helps NWSC reach the unserved with clean safe water.

The writer is principal corporate marketing officer, NWSC