The design and evaluation of water tariffs: A systematic review

Fuente, David

doi:10.1016/j.jup.2019.100975

Cited by 29 publications

(18 citation statements)

References 53 publications

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“…Therefore, if it is view from the average of water consumption level as amount of 16.21 m 3 /month, the range of the second block could be 11 -15 m 3 /month, while the third block will be exceeding 15 m 3 /month. The addition of consumption blocks is also possible because in some countries, consumption blocks can be divided between two to four blocks (Fuente, 2019). Based on WTP projection analysis, these tariffs are feasible from point of view of the service recipients, which are PDAM Sleman's customers, because it is still affordable by customers for water consumption as amount of average water usage.…”

Section: Discussionmentioning

confidence: 99%

Acceptance Analysis of PDAM Sleman’s Water Tariff Based on Revenue and Wilingness to Pay Projection

Wardiha

Istiarto

Nurrochmad

2021

Journal of the Civil Engineering Forum

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The Regional Water Company (PDAM) of Sleman provides clean water to the community and charges a tariff for each cubic meter of water sold to customers. Minister of Home Affairs Regulation No. 71 of 2016 states that PDAM tariffs requiring a review every four years. Most recently tariffs set by PDAM Sleman was in 2016 therefore it requires a recalculation. Besides that, it is necessary to analyze the tariff acceptance from the service provider and service recipient’s point of view. Calculation tariff method utilized a formula based on the Minister of Home Affairs Regulation No. 71 of 2016. Acceptance analysis conducted by calculating the projection of water sales revenue, the profit to earning assets ratio, and the willingness to pay (WTP) projection of customers. Revenue projections were obtained by multiplying tariffs with the water sold volume. The WTP projection is carried out using the inflation method based on the WTP of PDAM Sleman customers from the 2007’s research. PDAM Sleman tariffs based on calculations resulted low tariffs of IDR3727.48, basic tariffs of IDR4659.36, and full rate of IDR9460.17. Based on the WTP analysis, the tariffs are feasible from the the service recipient’s point of view, which are the PDAM customers, because it is still affordable by customers for their average water consumption. Nevertheless, from the point of view of the service provider, which is PDAM Sleman, the tariffs are not feasible because the profit ratio of 0.31% is still much lower than the fairness profit ratio as 10% amount. Therefore, it is necessary to make tariff adjustments to increase profits. The adjustment strategies such as by determined tariffs only based on consumption blocks without breaking down based on customer group categories and adjusting the range of second and third consumption blocks.

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Section: Discussionmentioning

confidence: 99%

Acceptance Analysis of PDAM Sleman’s Water Tariff Based on Revenue and Wilingness to Pay Projection

Wardiha

Istiarto

Nurrochmad

2021

Journal of the Civil Engineering Forum

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“…In this sense, successful valuation strategies should incorporate all key attributes: the users' ability to pay (ATP) and WTP, and the service providers' WTS. Academic studies (Fujita et al, 2005;Tussupova et al, 2015) showed that up to 90% of users have willingness to pay (WTP) a certain amount to improve WSS infrastructure. Generally, the WTP for sanitation is lower than for drinking water, especially inside low-income communities (see Figure 3).…”

Section: Ability To Pay Wtp and Wtsmentioning

confidence: 99%

“…Typically, the cost of supplying sanitation services is higher, the benefits are diffuse, and WTP is lower, resulting in smaller prioritization assessment by municipalities and users, which entails higher challenges for funding universalization initiatives when compared to drinking water expansions (Fujita et al, 2005;Tussupova et al, 2015).…”

Section: Ability To Pay Wtp and Wtsmentioning

confidence: 99%

“…Thus, inadequate affordability assessment should be avoided. Only the fraction of the actual household consumption covering basic needs should be used to estimate affordability (Fuente, 2019).…”

Section: Ability To Pay Wtp and Wtsmentioning

confidence: 99%

“…In developing countries, the 'access gap' for WSS creates pressure for universalization, especially within low-income communities. In developed countries, WSS expansions target stricter regulations compliance, because most of the high-return investments were secured in the late 19th century when basic infrastructure was developed (OECD, 2011;Fuente, 2019).…”

Section: Introductionmentioning

confidence: 99%

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Tariff structuring in water and sanitation: public profiting arrangements on universalization initiatives

Motta-Veiga

2021

Water Policy

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Water and sanitation service access is a global problem, impacting disproportionally poor communities of low-income countries. Failed universalization initiatives highlighted historical negligence, social inequality, and bad governance. Infrastructure developments require large investments, which most local governments cannot afford. Alternative funding might come from private investors through cost-effective project finance arrangements. Public services should be sustainable, conciliating users' willingness to pay with providers' willingness to supply. Governments have implemented profit-driven strategies over taxing outsourced public services to increase budget inflow. Inefficient tax schemes on essential public services have damaged universalization initiatives in developing countries. These negative taxing practices have damaged tariff structure, service sustainability, and project attractiveness. The public sector should not profit from unsustainable outsourced services that are required but they cannot supply. Water and sanitation expansions on low-income communities in developing countries should not take place as tariff-free schemes, but within a tax-exempt policy.

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Quality and leakage detection based water pricing scheme for multi-consumer building with real-time implementation using IoT

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Gayen

Pal

et al. 2023

Multimed Tools Appl

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The design and evaluation of water tariffs: A systematic review

Cited by 29 publications

References 53 publications

Acceptance Analysis of PDAM Sleman’s Water Tariff Based on Revenue and Wilingness to Pay Projection

Acceptance Analysis of PDAM Sleman’s Water Tariff Based on Revenue and Wilingness to Pay Projection

Tariff structuring in water and sanitation: public profiting arrangements on universalization initiatives

Quality and leakage detection based water pricing scheme for multi-consumer building with real-time implementation using IoT

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