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Determination of full cost recovery tariff ensuring the proper level of Maintenance Cost
A ‘tariff structure’ is a set of procedural rules used to determine the conditions of service and monthly bills for water users in various classes or categories.
Pricing structures The tariff structures used in urban water supply also vary across various service providers. The water charged could be in the form of non volumetric flat rate tariff, non volumetric water tariff, uniform metered tariff, metered block tariffs or a combination of above.
Determination of annual tariffs
The annual tariffs be determined on the basis of different levels of cost. The cost profiles described that as a minimum unit cost, the tariff should cover operating cost. and interest on loan.
If full cost recovery could not be attained at present the tariff profiles shall reflect a movement towards full cost recovery by a gradual increase in each year the depreciation provisions necessary.
Keep the Tariff Structure Simple. The WSS tariff structure should be very simple for customers to understand and to adjust consumption according to price level it should also be simple for the Service Provider to administer effectively. Most of the Service Providers apply tariff structures that are very much complex and that include a multitude of blocks and categories based on metered or assessed consumptions. Large cross subsidies between industries and domestic customers may be avoided: when a large part of revenues come form a small number of customers, revenues are very sensitive to the behavior of these few customers. The price setting process should, in the longer term, be based on complying with a revenue requirement that is sufficient to meet the service provider’s level of service obligations as set out in statutory standards, or in compliance with levels specified in the interim targets. The price setting process should be developed in two phases: (i) A transitional
A ‘tariff structure’ is a set of procedural rules used to determine the conditions of service and monthly bills for water users in various classes or categories.
Pricing structures The tariff structures used in urban water supply also vary across various service providers. The water charged could be in the form of non volumetric flat rate tariff, non volumetric water tariff, uniform metered tariff, metered block tariffs or a combination of above.
Determination of annual tariffs
The annual tariffs be determined on the basis of different levels of cost. The cost profiles described that as a minimum unit cost, the tariff should cover operating cost. and interest on loan.
If full cost recovery could not be attained at present the tariff profiles shall reflect a movement towards full cost recovery by a gradual increase in each year the depreciation provisions necessary.
Keep the Tariff Structure Simple. The WSS tariff structure should be very simple for customers to understand and to adjust consumption according to price level it should also be simple for the Service Provider to administer effectively. Most of the Service Providers apply tariff structures that are very much complex and that include a multitude of blocks and categories based on metered or assessed consumptions. Large cross subsidies between industries and domestic customers may be avoided: when a large part of revenues come form a small number of customers, revenues are very sensitive to the behavior of these few customers. The price setting process should, in the longer term, be based on complying with a revenue requirement that is sufficient to meet the service provider’s level of service obligations as set out in statutory standards, or in compliance with levels specified in the interim targets. The price setting process should be developed in two phases: (i) A transitional