PM Browne Warns Water Rates May Rise as Gov't Spends $40M Annually on Subsidies

Prime Minister Gaston Browne has warned that Antigua and Barbuda may need to increase water rates as the Government spends an estimated EC$40 million each year subsidizing water production and distribution.

According to Antigua News Room, Browne made the remarks during his weekly Browne and Browne radio programme on Saturday, citing the escalating cost of desalinated water production 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 reverse osmosis water production is considerably more expensive than traditional groundwater extraction, requiring significant government support to shield consumers from bearing the full cost.

While Browne said the Government has no immediate plans to pass those costs on to households, he indicated that modest rate adjustments could become necessary down the line.

"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 also argued that pricing has a direct role in encouraging conservation, particularly as the country contends with one of its worst droughts in decades.

"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 stressed that responsible water use will grow increasingly important as Antigua and Barbuda expands its reliance on desalination to meet demand and ensure a reliable supply.

His comments come as the Government continues investing in water infrastructure and additional reverse osmosis capacity, aiming to improve distribution across the island while addressing the prolonged effects of drought conditions.

Browne maintained that any future rate adjustments would need to strike a balance between affordability for residents and the financial realities of producing and delivering water in a country heavily dependent on desalination technology.