Pricing Solution for Water Supply and Solid Waste Management

Water tariff is an important management tool. The important objectives of municipal water tariff design are to balance among four important objectives namely cost recovery, economic efficiency, equity and affordability. There are a number of trade-offs between different objectives and the average price of water supplied by the utility through domestic connections. An efficient tariff will create incentives that ensure for a given water supply cost, that users obtain the largest possible aggregate benefits.