KWA running at loss, 40 pc water distributed sans revenue

Thiruvananthapuram: It is estimated that over 35-40 percent of water distributed by the Kerala Water authority (KWA) is not bringing in any revenue. State minister for Water Resources, Roshy Augustine said this in response to the questions raised by Xavier Chittilappilly, A.C Moideen, K.V Sumesh and Kanathil Jameela in the Kerala Legislative Assembly. 

The loss of water (physical loss) due to leakage in pipes, metre failure, water theft, etc that makes it difficult to assess the actual consumption of water adds to this loss of revenue. KWA says that it presently does not have the means to distinguish the loss incurred due to physical circumstances (leakage, equipment malfunction) and financial (non-payment, incorrect metre reading). 

As per the income-expenditure data of 2023-24, Rs 24.82 is the production-distribution cost for 1000 litres of drinking water. 

Kerala Water Authority has been functioning on a revenue deficit since its inception. The project grants received from the government help in balancing out this revenue deficit to a certain extent. The main source of revenue is the water charge levied from customers as per the government tariff. 

The annual financial data submitted by the KWA to the Accountant General (audit) for the year 2022-23 states that the production and distribution of 1000 litre drinking water cost Rs 24.39. This increased to Rs 24.82 in 2023-24. Meanwhile, Rs 19.80 was received as revenue per kilo litre of water. This means that to produce 1 kilo litre of water, the government incurs a loss of Rs 5.02. This affects the financial situation of KWA.

The dealings of the Kerala Water Authority are governed as per the Water Supply Regulation Act 1986. As per this act, the rate of the drinking water should be fixed in a manner that doesn’t result either in a profit or a loss for KWA. 

The water charge is not being increased proportionally to the annual increase in electricity charge, loan repayment, repair charges, etc. All these factors add to the woes of KWA. 

KWA is currently running at a loss of Rs 1312.34 crore. The accumulated loss is Rs 6223.76 crore, the minister said.