Residents Could Face Possible Water Rate Increase as Subsidies Reach EC$40 Million Annually

Prime Minister Gaston Browne says Antigua and Barbuda may eventually have to increase water rates as the Government continues to shoulder approximately EC$40 million annually in subsidies to keep water affordable for consumers.

Speaking on his Browne and Browne radio programme on Saturday, Browne said the cost of producing desalinated water has risen significantly and is placing increasing pressure on public finances.

“We are literally subsidizing water to the tune of about $40 million a year,” Browne said.

The Prime Minister explained that producing reverse osmosis water is extremely expensive and costs several times more than traditional groundwater supplies.

Despite the significant subsidies, Browne stressed that the Government has no intention of immediately recovering the full cost from consumers.

However, he suggested that modest adjustments may eventually become necessary.

“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 water pricing must also encourage conservation, particularly during periods of drought.

“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 noted that Antigua and Barbuda is experiencing one of its most severe droughts in decades and emphasized that responsible water management will be critical to ensuring long-term sustainability.