Differentiated Tariffs Lead to Significant Drop in Water Consumption Across Kazakhstan
Water consumption has significantly decreased in eleven regions of Kazakhstan following the implementation of differentiated tariffs for water supply in 2024. The new tariff system, introduced at the start of last year, applies an increasing coefficient based on the principle of “the more you consume, the more you pay.” The system features four levels of tariffs for individuals: Up to 3 cubic meters per month: Consumers continue to pay the original tariff, which varies by region but averaged 82.66 KZT ($0.16) per cubic meter nationwide when the system was introduced. This group accounts for 49% of the population in the eleven regions. 3 to 5 cubic meters per month: A 20% increase in the tariff applies, covering 20% of the population. 5 to 10 cubic meters per month: The tariff rises by 50%, affecting another 20% of the population. Over 10 cubic meters per month: The tariff doubles, impacting 11% of the population. The introduction of these “social norms of consumption” has led to an average water savings of 1.65 million cubic meters per month in six regions — Akmola, Aktobe, Turkestan, Ulytau oblasts, and the cities of Almaty and Shymkent. According to official data, the average monthly water consumption in these regions dropped from 21.1 million cubic meters to 19.5 million cubic meters after the implementation of the new tariff system. As of December 1, 2024, the “social consumption norms” were extended to the Zhambyl region, with plans to roll out the system in Mangistau, East Kazakhstan, West Kazakhstan, and North Kazakhstan regions in 2025. “Additional funds generated from increased tariffs for high-consumption users will be directed toward the modernization and reconstruction of water supply and wastewater infrastructure,” stated the press service of the anti-monopoly committee. These investments aim to improve service quality and enhance the sustainability of the water supply system. The Ministry of the National Economy estimates the additional revenue from the tariff increases at approximately 13 billion KZT (around $25 million) annually. Previously, The Times of Central Asia reported that nearly 10 million people, or 14% of Central Asia's population, lack reliable access to safe drinking water. The Eurasian Development Bank (EDB) has estimated that addressing this issue will require over $12 billion between 2025 and 2030, or roughly $2 billion per year.