AMMAN — Minister of Water and Irrigation, Mohammed Al-Najjar, said
on Monday, September 4, that the government has intentions to raise water
tariffs for household consumption. However, he emphasized that "no
decision has been made as of yet."
اضافة اعلان
During a parliamentary meeting of the Agriculture, Water,
and Desert Committee to discuss the government's consideration of raising water
prices, Najjar indicated that it is expected that water bill tariffs for the
household sector will see an approximate increase of 4.6 percent for the
upcoming year, Al-Mamlaka TV reported.
He clarified that there are no plans to increase water
prices for industries, trade, agriculture, or tourism, but rather the focus is
solely on raising tariffs for household use. Importantly, he stressed that no
final decision has been reached in this matter. Najjar also said that there
will be no hike in water tariffs for the first consumption tier, which includes
approximately 29 percent of consumers.
Sector’s debt increases by JD200 millionHighlighting the financial challenges faced by the water
sector, he noted that the sector's debt increases by JD200 million annually. He
further explained that the energy bill associated with water consumption
reaches a staggering JD160 million each year, a financial burden the sector
grapples with.
Reducing water loss by 2 percent
Moreover, he revealed that the energy bill for water has
tripled over the past decade. The new water strategy includes ambitious goals
such as reducing annual water loss by 2 percent.
In a bid to tackle these challenges, the ministry is also
looking to expand its reliance on renewable energy sources to reduce the energy
bill.
He underlined the critical water situation in Jordan, where
there is an acute shortage of water for all uses. Despite this, the percentage
of water storage in Jordan's main dams has doubled compared to the previous
year, reaching approximately 30 percent this year, with a total storage
capacity of 84,596,000 cubic meters out of a maximum capacity of 280 million
cubic meters.
ShortfallThe ministry noted that 80 percent of household sector
subscribers pay tariffs ranging from 0.4 to 0.6 Jordanian dinars per cubic
meter, covering only 30 percent of the maintenance and operation costs per
cubic meter.
Importantly, it highlighted that current tariffs for water
and sanitation services, along with other fees, fall short of covering the full
cost of services provided by the sector. This shortfall affects the development
and maintenance of water and sanitation systems and fails to align with current
and future infrastructure needs.
Tiered tariff systemRevenues from water and sanitation bills constitute
approximately 63 percent of the sector's total revenues, with 70 percent of
these revenues originating from the household sector. This sector benefits from
low, government-supported tariffs, making up around 95 percent of total
subscribers. In contrast, non-household sector subscribers, who consume 16
percent of the water, face a "fixed and unsupported" tariff.
The tiered tariff system is expected to encourage consumers
to conserve water while supporting individuals with lower consumption levels,
all while providing variable revenues based on consumption. However, the sector
must grapple with fixed costs while ensuring the continuity of service.
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