Training - A Tool for Designing Equitable Water Tariffs with xsl
Summary
Tariff modelling is not something water operators do often. However tariff modeling is crucial for water utilities because it provides a framework for setting fair, reasonable, and sustainable water prices that balance the utility's need for revenue with the affordability for consumers. Effective tariff models ensure cost recovery, encourage efficient water use, and promote equitable access to water services. UN-Habitat promotes fair water tariffs as part of its broader water and sanitation programs, advocating for policies that ensure access to affordable and safe water for all, especially low-income households. This includes implementing tiered or lifeline tariffs, where the initial block of water is priced lower to ensure basic needs are met, while higher consumption is charged at a progressively higher rate. This training event will equip participants with ability to use a simple xlxs tool to compare the impact of customisable block water tariffs. The tool was developed in the frame of the WOP between Hamburg and eThekwini Participants need only a basic level understanding of Mircorosft Excel and access to a laptop with a recent version of Excel to participate.
Objectives
Key objectives of this event are: 1. To provide participants with understanding of key concepts and features of the Tool: • Volumetric Pricing: Customers are charged based on the volume of water consumed, with a constant price per unit. • Increasing Block Pricing: The price of water increases as the volume consumed increases, encouraging water conservation. • Decreasing Block Pricing: The initial cost is high and decreases as the volume of consumption increases. • Uniform Pricing: All customers pay the same price regardless of volume usage. • Indigent Tariff: Subsidized tariff for eligible low-income households. • Commercial Tariff: Monthly charge based on actual consumption for businesses. 2. To provide participants with have hands-on experience using the tool to compare tariffs of their own design. • Dummy data will be provided for testing. 3. To disseminate the open source tool developed in the GWOPA programme and to gather feedback to further improve the tools applicability and usability. (The tool is freely available for download and dissemination.)
Partners
Session panelists
Mr. Ismail Banoo
Mr. Vishnu Mabeer
Ms. Ann Aol
Ms. Claudia Wendland
Mr. Kees de Jong
Ms. Leonie Hyde-Smith