New water tariff fails to end dispute over retrospective billing in Kullu
New water tariff fails to end dispute over retrospective billing in Kullu

Residents in Kullu are demanding that the new uniform water tariff of Rs 14 per kilolitre (kL), which eliminates usage slabs, be applied retrospectively for the period from October 2024 to March 2026. However, officials have clarified that bills for this duration will be calculated under the notification issued on September 21, 2024, leaving the controversy unresolved.

Revised notification lacks clarity

The revised notification, issued on April 2, 2026, introduces a flat rate of Rs 14 per kL but makes no mention of retrospective implementation. This has frustrated residents who had hoped the rollback of the slab-based structure would ease their financial burden.

So far, residents in Kullu have received water bills only up to March 2025, with those bills being issued in December 2025. The prolonged delay has made it difficult for households and businesses to budget for utility expenses. Property owners renting out accommodation also fear they could lose tenants before outstanding water dues are settled.

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Background of the controversy

The controversy first erupted in July 2025 when Kullu residents received long-delayed water bills incorporating a steep retrospective tariff hike effective from October 2024. The introduction of a slab-based tariff structure led to a sharp increase in charges. In one case, a resident’s quarterly bill rose from Rs 1,295 to Rs 13,678.

The tariff for high consumption, defined as usage above 30 kL per month, increased from Rs 13.86 to Rs 59.90 per kL, with an additional 30 per cent sewerage charge levied on the total amount. The impact was particularly severe on joint families and rented accommodations sharing a single water meter, where water consumption is naturally higher.

Public protests and government response

The steep bills sparked widespread protests in Kullu and Manali, with residents burning water bills in public while hoteliers raised concerns over the viability of their businesses. Responding to the public outcry, the government rolled back the slab-based tariff structure in April 2026 and introduced a uniform rate of Rs 14 per kL. While the decision was welcomed as a positive step, uncertainty over the applicable billing period has prevented the issue from being fully resolved.

Residents question fairness of rates

Many residents argue that Kullu’s gravity-fed water supply is less expensive to operate than systems in cities that rely on costly pumping, yet consumers are charged comparable rates. They question why a hill town with abundant natural water resources should face such high water charges.

Apart from the tariff dispute, residents have also urged the government to simplify the procedure for obtaining new water connections. They argue that unless administrative hurdles are eased, families living in shared accommodation will continue to shoulder an unfair financial burden.

Unresolved dispute highlights need for transparency

The water billing dispute has highlighted the need for transparent policies and more citizen-friendly utility governance in Kullu. While the government’s rollback suggests it has responded to public concerns, the absence of clarity on retrospective billing in the latest notification means the controversy remains unresolved.

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