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Tariffs

11 bytes added, 02:38, 16 January 2013

→‎Types of tariffs

* '''Two Part Increasing Block Tariff'''; a fixed minimum monthly charge for all consumers, in addition to either a flat or variable tariff based on usage. This tariff combines a fixed service charge plus two or more blocks of prices that increase as consumption increases. Billing, for instance, which is independent of consumption can be covered by the fixed charge.

Sometimes Two Part Increasing Block Tariff are also called ''lifeline tariffs'' or ''social block tariffs'' because they aim to address the needs of the poor by providing a basic level of consumption either for free or at very low cost, with a form of block tariff for consumption above the lifeline level. A further refinement can be to provide a basic amount of water (e.g. 20 m3 m³ per household per month) free of charge, and introduce the volumetric rate for amounts exceeding this (Winpenny, 2011).

* '''Decreasing Block Tariff'''; Consumers are charged a higher cost per unit of water at lower consumption levels. As the consumption level increases, the price per unit decreases.

* '''Output-Based Tariff'''; users pay in exchange for improved service and based on a schedule of improvements promised by the water or sanitation supplier.

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