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Increasing price with volume Increasing price with volume
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...
26 Jan 2009 - by GRID-Arendal