One time settlement scheme for unpaid water bills in Delhi

According to DJB officials, around 1.6 million (40%) of their 2.7 million consumers have received incorrect water bills for years

The Delhi government on Friday said it will soon float a “one-time settlement scheme” that will allow residents to clear their pending water bills after paying substantially reduced amounts that have been recalculated based on their usage pattern.

This picture taken on September 20, 2019 shows drops of drinking water leaking from a tap at Mawsynram in the northeastern Indian state of Meghalaya. - Meghalaya, home to two of the wettest places on earth, is among the greenest states in India but it has rapidly lost its rich rainforests over the last few decades. (Photo by DIPTENDU DUTTA / AFP) / TO GO WITH Asia-environment-river-India-climate,SCENE by Abhaya Srivastava (AFP)

The planned move will offer relief to over a million consumers who have complained of inflated water bills for several years, especially since the Covid-19 lockdown, when meter readings became erratic.

According to officials of the Delhi Jal Board (DJB), around 1.6 million (40%) of their 2.7 million consumers have received incorrect water bills for years. A majority of residents have, as a result, stopped paying these bills entirely, significantly slashing the water utility’s revenues. The Delhi government has received numerous complaints to this effect as well, officials said.

Chief minister Arvind Kejriwal speaking during an address on Friday said, “I know that the water bills at this time are incorrect. I am coming up with a complete plan. Anyone who feels their water bill is messed up, need not pay it. We will fix it for everyone.”

His remarks came during a programme in Mayur Vihar Phase 3, where he laid the foundation stone for a new school building.

The cabinet will discuss the water bill settlement by February 14, said state urban development minister Saurabh Bharadwaj, addressing a press briefing at the Delhi Secretariat. He said a new bill with the recalibrated overall amount will be sent to each consumer. Consumers can accept the one-time offer and pay the bill, clearing all previous arrears.

DJB officials said a plethora of problems impact the accuracy of water bills, including human errors by meter readers. Further, no manual meter readings were taken for much of 2020 and 2021, as Delhi remained locked down during the pandemic, said officials.

Water minister Atishi said the scheme will benefit DJB as well.

“When a consumer feels their bill is higher than their consumption, they tend not to pay. Currently, 40% consumers are staring at inflated bills and DJB is also facing revenue collection challenges,” said Atishi.

The government expects that scheme will bring in a revenue of around ₹2,500 crore, officials said.

To be sure, in June 2023, the Delhi government announced a similar one-time settlement scheme for pending water bills of around 1.17 million consumers, but stopped short of implementing the programme, citing “administrative reasons”.

Bharadwaj and Atishi said the entire recalculation process will be scientific and rational.

“For instance, if a consumer gets an inflated bill of ₹1 lakh and based on their consumption pattern, the bill is recast to ₹7,000, the consumer need only pay ₹7,000, said Atishi.

“However, if the consumer doesn’t pay the recalculated amount, they will have to pay the entire ₹1 lakh,” she said.

When asked about the deadline for payment, a Delhi government official said the finer details are being worked out.

Atul Goyal, who heads Urja (united resident welfare associations joint action), an umbrella body of Delhi’s resident welfare associations, said while the scheme is welcome, the government must also fix the root cause of the problem. “The meter reading system is poor and irregular. Either the meters are faulty, or the meter readers do not visit homes, or they feed incorrect readings in the system. If the government fixes these problems, it will save people a lot of hardships.”

Atishi said the scheme will continue for four months. “To avail of this scheme, consumers are required to have functional water meters. Those with dysfunctional meters will have to get the meters replaced,” she said.

Delhi Bharatiya Janata Party (BJP) chief Virendra Sachdeva called the plan a pre-poll gimmick. The Kejriwal government brings in a scheme to settle water bills before every election, but the benefits never reach the public, he said.

“They should introduce a plan where a consumer need only pay 7% to 10% of the pending amount,” said Sachdeva.