The metropolitan and provincial waterworks authorities are both preparing to raise the price of tap water, citing higher capital costs.
Metropolitan Waterworks Authority governor Manit Pan-em said on Monday the MWA was struggling to meet rising operating costs.
He cited:
• 150 million baht per year in land and house taxes, after not having to pay at all.
• 3 million baht a day paid to the Royal Irrigation Department for raw water.
• A 20-30% increase in electricity bills, or about 20 million baht per month, due to the higher Ft rate.
• Pipe-laying costs of 100 million baht per year.
Mr Manit said the MWA is considering increasing water prices, which have been frozen for 23 years, in line with the higher capital costs to maintain financial liquidity as it is committed to expenditure of 42 billion baht under the 9th expansion project.
Provincial Works Authority deputy governor Mongkol Valyasevi said the PWA is also studying a new water pricing structure, in line with a 15-20% increase in capital costs including higher electricity and chemical costs. He said it was over 10 years since the PWA last raised its charges.
The new pricing structure was expected to be finished in two months, after which it would be forwarded to the cabinet for consideration, he said.
