Water bills to rise 20 percent in Iran

TEHRAN, May 19 (MNA) - The government has reportedly decided to increase water bills 20 percent when the second phase of the subsidy reform plan goes into effect. Accordingly, the price of each cubic meter of water will rise from 2,500 rials (roughly 20 U.S. cents) to 3,000 rials (24 cents). Earlier, Energy Minister Majid Namjou had told the Mehr News Agency that the most likely decision at the moment is a 20-percent increase in water bills. However, he said the final decision lies with the subsidy reform plan committee. The low price of water has led many water and sanitation companies to go through hard financial problems. However, the Energy Ministry hopes that once the prices are reformed the financial problems of these companies will be resolved and people will also change their habit of extravagant water consumption. Majlis on Thursday approved $462 billion annual budget, allowing the government to gain $53.8 billion from subsidy cut for the current Iranian calendar year which started on March 20. The budget was approved with 123 votes in favor, 46 against, and 14 abstentions among the 200 members present in parliament. The implementation of the subsidy reform plan began in December 2010.