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Water Tariff and Pricing
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through a piped network to its customers. The term is also often applied to wastewater tariffs. Water and wastewater tariffs are not charged for water itself, but to recover the costs of water treatment , water storage, transporting it to customers, as well as collecting and treating wastewater . Prices paid for water itself also exist in a few countries and are called water abstraction charges or fees. Abstraction charges are not covered in this article, but in the article on water pricing ). Water tariffs vary widely in their structure and level between countries, cities and sometimes between user categories (residential, ...
With just about every good or service, including some essential services, people decide how much of it they want based on its cost. When gas prices go up, car drivers decide whether or not they want to absorb that cost. But when the cost of clean water goes up, it’s mostly absorbed by the service provider: the government. Not so in a competitive water market, where the cost of using water for production is given by its market price (purchase price for the buyer and opportunity cost for the seller). In an excerpt from Liquid Assets (2002), executive director of Environment Probe, Elizabeth ... Read More
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