Prime Minister Gaston Browne says Antigua and Barbuda may eventually have to increase water rates as the Government continues to spend an estimated EC$40 million annually to subsidize water production and distribution.
Speaking on his weekly Browne and Browne radio programme on Saturday, Browne said the rising cost of producing desalinated water is placing a growing strain on public finances, even as the Government seeks to keep water affordable for residents.
“We are literally subsidizing water to the tune of about $40 million a year,” Browne said.
The Prime Minister explained that reverse osmosis water production is significantly more expensive than traditional groundwater extraction, requiring substantial government support to prevent consumers from bearing the full cost.
Despite the financial burden, Browne said the Government is not seeking to immediately pass those costs on to households. However, he indicated that modest adjustments to water rates could become necessary in the future.
“If the flat fee of $22 has to move to $30, I don’t think anyone should make a major issue about that. People are receiving 1,000 gallons of water for that amount,” he said.
Browne argued that pricing also plays a role in encouraging conservation, particularly as Antigua and Barbuda grapples with one of its worst droughts in decades.
“If water is too cheap, you get more wastage. Even during the drought, you have people watering their lawns because the water is inexpensive,” he said.
The Prime Minister said responsible water use will become increasingly important as the country expands its reliance on desalination to meet demand and maintain a reliable supply.
His comments come as the Government continues investing in water infrastructure and additional reverse osmosis capacity in an effort to improve distribution across the island while addressing the prolonged effects of drought conditions.
Browne maintained that any future adjustments would have to balance the need for affordability with the realities of producing and delivering water in a country heavily dependent on desalination.
This article was originally published by Antigua News Room. Read the original article here: Antigua and Barbuda May Need Higher Water Rates, Browne Warns.