Prime Minister Gaston Browne has signalled that water rates in Antigua and Barbuda may need to rise, as the Government currently spends approximately EC$40 million annually in subsidies to keep water costs affordable for residents.
According to Antigua.news, Browne made the remarks during his Browne and Browne radio programme on Saturday, citing the rising cost of desalinated water as a growing strain 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 significantly more expensive than drawing from traditional groundwater sources. Despite the scale of the current subsidy, he stressed that the Government has no plans to immediately pass the full cost on to consumers.
However, Browne suggested that modest rate adjustments may eventually be unavoidable. "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.
Beyond the fiscal argument, Browne contended that low water prices contribute to wasteful consumption, particularly during dry periods. "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 currently enduring one of its most severe droughts in decades, and emphasised that responsible water management will be essential to ensuring the country's long-term water security.
