NEW DELHI: The Aam Aadmi Party on Monday kept its promise of free water – 20 kilolitres per month or an average of about 660 litres a day per family – but it came with a rider and a whammy for bigger water consumers. The rider is that if consumption exceeds 20 kl, you would be billed for the entire water consumed, and the whammy was that water rates would be hiked by 10%.

In other words, while AAP largesse would benefit around nine lakh families, for the remaining six lakh families water would become more expensive, and going ahead, this could accentuate the rich versus poor debate. At present, free water won’t be available in the NDMC areas, Delhi Cantonment and Dwarka.

Announcing the free water scheme, Delhi chief minister Arvind Kejriwal said that the sop would be effective from Wednesday, or January 1. The 10% higher water tariff would also kick in on the same day. The hike is part of an earlier decision taken by Delhi Jal Board to increase tariff by 10% annually. AAP had opposed this, claiming the need to increase rates was a result of DJB’s mismanagement. Obviously, the hard economics of water in Delhi has forced Kejriwal to do a rethink.

In all, Delhi has 16 lakh metered water connections. In addition, there are four lakh connections that are not metered. DJB was quiet on how the water subsidy would apply to these connections.

The total annual subsidy in the current financial year – that is the next three months up to March – would be about Rs 40 crore and the annual subsidy would be in the region of Rs 160 crore, said DJB officials.

Under the new system, families that consume 21 kl or more will be charged for the entire quantity of water. So from paying nothing for up to 20 kl of water each month, the usage of even one extra litre will lead to a bill of Rs 884. The scheme for now has been announced till March, the end of the current financial year. After that, DJB will work out a different head for the additional expenditure.

NDMC chairman Jalaj Srivastava said that the decision on a possible change in rates could only be taken in a council meeting, the next one having been scheduled for January 10, 2014. There is no clarity for group housing society members since each resident pays a fixed amount, irrespective of consumption.

"DJB has been making profit for three years. At present, we need about Rs 40-41 crore to provide free water uptil March. DJB will bear this cost. From April 2014, a better system is needed to divert this money from DJB’s non-planned expenditure to this head of ‘free water’ and the government will have to help out," said DJB sources.

AAP sources justified the 10% hike by pitching it against the free water sop. "If we are rewarding someone for using less water, those who consume more should pay more," said a senior party official.

An annual 10% increment in tariff was announced by DJB in 2010, when Shiela Dikshit as CM was at the helm of DJB. After two successive increments, the one to be implemented in 2012 was kept in abeyance following a public outcry against faulty water bills. Last year DJB brought in an online billing system and claimed that by mid-2013, there would be no incorrect bills. However, this claim is yet to be realized. Yet AAP has agreed to a 10% hike this time. This means, that those who have been complaining about inflated bills could get a bigger shock in the coming year.