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Increasing price with volume

Increasing price with volume

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Uploaded 16 Feb 2012 by GRID-Arendal
Year: 2009
From collection: Vital Water Graphics 2
Author: GRID-Arendal
Description:
Rising block tariffs aim to achieve several public policy goals. A low or zero tariff applied to the first block can enhance affordability. For example, Durban, South Africa, provides 25 litres of water a day free of charge - a lifeline to many - with a steep increase above this level. Higher tiers aim at enabling utilities to increase efficiency, by creating disincentives for overuse, and at mobilizing revenues to cover costs. Block tariffs thus create the potential to align revenues with the costs of service provision, facilitating a sustainable financing model, while at the same time providing water for basic needs at below the cost of operations and maintenance. Many countries apply a low tariff for an initial volume of water, though few countries follow South Africa’s policy of free water. The size of the baseline tariff and of the increments between blocks varies across countries. Increments are particularly high in countries such as Burkina Faso and Senegal, while Bangalore, ...
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