Why did Delhi residents receive ‘inflated’ water bills? Minister Parvesh Verma explains, slashes interest rate
Delhi's minister Parvesh Verma linked rising water bills to a 5% compound interest per billing cycle. The government will waive late payment surcharges for households until March 31, 2024, expected to benefit around 29 lakh Delhi Jal Board customers.
Delhi's Water Minister Parvesh Verma has attributed the sharp increase in water bills of residents in the national capital to a 5% compound interest applied per billing cycle, whether monthly or bi-monthly.
“People received bills in lakhs because the Delhi Jal Board levied an interest rate of 5% per billing cycle, with some cycles being monthly or every two months,” ANI quoted Verma, addressing the media on Friday.
According to him, for a monthly cycle with a 5% compounded interest rate, a ₹100 bill would become ₹178 over one year. When the interest rate was lowered from 5% to 2%, the monthly cycle now results in people paying ₹130 for a ₹100 bill after compounding interest.
Similarly, for a two-month cycle, where people used to pay ₹134 for a ₹100 bill, they will now pay ₹115, so we've reduced the interest.
Delhi govt waives off late payment surcharges
Meanwhile, in a significant relief for Delhi residents, the government declared that from next month, all late payment surcharges (LPSC) on water bills for households and government establishments will be waived completely, PTI reported citing Minister Parvesh Verma.
The waiver scheme, which will continue until 31 March next year, is likely to benefit around 29 lakh registered Delhi Jal Board (DJB) customers, as well as government buildings and offices.
Notably, private schools and hospitals, along with other commercial establishments, are excluded from the scheme.
“This is to be the first and last LPSC waiver scheme of this government. This is only for two categories, a decision on the commercial category is yet to be taken. Every case will be studied with full focus by DJB officials at the public awareness camps that will be set up in each colony,” Verma said in a press conference.
According to him, ₹16,068 crore is owed in water bills under the domestic category, ₹11,069 crore is a late payment surcharge, and the remaining amount is the principal.
(With inputs from agencies.)