How is the drinking water rate determined? — Ministry of Agriculture

Ensuring the population has access to clean drinking water is one of the state’s most important tasks. The stable operation of water supply systems depends directly on fair and economically sound rates.

The Ministry of Water Resources, Agriculture, and Processing Industry notes that in many rural communities in Kyrgyzstan, water rates remain too low. This means they do not cover the actual costs of maintaining and operating water supply systems.

As a result, service quality deteriorates, infrastructure wear and tear increases, and water supply disruptions occur.

The tariff for drinking water is not set arbitrarily. It is calculated using an approved methodology in accordance with a resolution of the Cabinet of Ministers.

The main principle is to cover all actual costs necessary for uninterrupted water supply.
When setting the tariff, the full range of expenses incurred by the water utility is taken into account. These include, for example, the volume of water consumed (including water for livestock), the cost of services provided to the public, electricity (for operating pumps and equipment), materials, and chemical reagents. Also included are depreciation (wear and tear of pipes, pumps, and structures), repairs and maintenance, employee salaries, administrative and general overhead costs, and production (shop floor) costs. In addition, this includes taxes and mandatory payments, work clothing, protective equipment, inventory, the company’s production plan, and the final calculation of the service cost.

All these elements make up the cost of water, below which the tariff must not fall.
Drinking water tariffs are regulated by the state.

They are approved by the authorized body—the Antimonopoly Regulation Service—undergo a review of the validity of all expenses, and are ratified by the representative body—the Aiyl Kenesh.

This ensures transparency, legality, and the protection of the public’s interests.

There are systemic issues that affect the setting and collection of tariffs: tariffs are artificially low, low payment rates from the public, a shortage of qualified specialists, poor management of water supply systems, and limited local financial resources.

As a result, utilities cannot fully maintain the networks and keep them operational.
A properly set tariff is not “more expensive,” but more reliable and sustainable.
If the tariff is below cost, the system gradually breaks down.

Only with full cost recovery is it possible to ensure: reliable water supply, quality service, and long-term infrastructure development.