Cost Recovery, Equity, and Efficiency in Water Tariffs : Evidence from African Utilities

Banerjee, Sudeshna; Foster, Vivien; Ying, Yvonne; Skilling, Heather; Wodon, Quentin

dc.creator	Banerjee, Sudeshna
dc.creator	Foster, Vivien
dc.creator	Ying, Yvonne
dc.creator	Skilling, Heather
dc.creator	Wodon, Quentin
dc.date	2012-03-19T18:41:14Z
dc.date	2012-03-19T18:41:14Z
dc.date	2010-07-01
dc.date.accessioned	2023-02-17T21:05:00Z
dc.date.available	2023-02-17T21:05:00Z
dc.identifier	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100728131236
dc.identifier	http://hdl.handle.net/10986/3868
dc.identifier.uri	http://localhost:8080/xmlui/handle/CUHPOERS/244832
dc.description	Water and sanitation utilities in Africa operate in a high-cost environment. They also have a mandate to at least partially recover their costs of operations and maintenance (O&M). As a result, water tariffs are higher than in other regions of the world. The increasing block tariff (IBT) is the most common tariff structure in Africa. Most African utilities are able to achieve O&M cost recovery at the highest block tariffs, but not at the first-block tariffs, which are designed to provide affordable water to low-volume consumers, who are often poor. At the same time, few utilities can recover even a small part of their capital costs, even in the highest tariff blocks. Unfortunately, the equity objectives of the IBT structure are not met in many countries. The subsidy to the lowest tariff-block does not benefit the poor exclusively, and the minimum consumption charge is often burdensome for the poorest customers. Many poor households cannot even afford a connection to the piped water network. This can be a significant barrier to expansion for utilities. Therefore, many countries have begun to subsidize household connections. For many households, standposts managed by utilities, donors, or private operators have emerged as an alternative to piped water. Those managed by utilities or that supply utility water are expected to use the formal utility tariffs, which are kept low to make water affordable for low-income households. The price for water that is resold through informal channels, however, is much more expensive than piped water.
dc.language	English
dc.relation	Policy Research working paper ; no. WPS 5384
dc.rights	CC BY 3.0 IGO
dc.rights	http://creativecommons.org/licenses/by/3.0/igo/
dc.rights	World Bank
dc.subject	ADMINISTRATIVE COSTS
dc.subject	AFFORDABLE WATER
dc.subject	AVERAGE TARIFF
dc.subject	AVERAGE TARIFFS
dc.subject	BALANCE
dc.subject	BLOCK STRUCTURE
dc.subject	BLOCK TARIFF
dc.subject	BLOCK TARIFF STRUCTURE
dc.subject	BLOCK TARIFFS
dc.subject	CAPACITY BUILDING
dc.subject	CAPITAL COSTS
dc.subject	CENTRAL GOVERNMENT
dc.subject	COMMERCIAL CUSTOMERS
dc.subject	COMMERCIAL TARIFFS
dc.subject	CONNECTION CHARGE
dc.subject	CONNECTION CHARGES
dc.subject	CONNECTION COST
dc.subject	CONNECTION COSTS
dc.subject	CONNECTION FEE
dc.subject	CONNECTION FEE FOR SEWERAGE
dc.subject	CONSUMPTION BLOCKS
dc.subject	CONSUMPTION CHARGE
dc.subject	COST OF WATER
dc.subject	COST RECOVERY
dc.subject	COVERING
dc.subject	CROSS-SUBSIDIES
dc.subject	CROSS-SUBSIDIZATION
dc.subject	CUBIC METER
dc.subject	CUBIC METERS
dc.subject	CUBIC METERS PER MONTH
dc.subject	DEMAND MANAGEMENT
dc.subject	DESALINATION
dc.subject	DISCOUNT RATE
dc.subject	DISTRIBUTION OF WATER
dc.subject	ECONOMIC BENEFITS
dc.subject	ECONOMIC DEVELOPMENT
dc.subject	ECONOMIC EFFICIENCY
dc.subject	EFFECTIVE PRICE
dc.subject	EFFICIENT PRICE
dc.subject	ELECTRICITY
dc.subject	EMPLOYMENT
dc.subject	EQUITY CRITERION
dc.subject	EXORBITANT TARIFFS
dc.subject	FIXED CHARGE
dc.subject	FIXED CHARGES
dc.subject	FIXED COSTS
dc.subject	FIXED FEE
dc.subject	FLAT CHARGES
dc.subject	FORMAL UTILITY
dc.subject	FREE WATER
dc.subject	GRAVITY
dc.subject	GROSS DOMESTIC PRODUCT
dc.subject	HIGH-VOLUME CONSUMERS
dc.subject	HIGHER CONSUMPTION
dc.subject	HOUSEHOLD CONNECTION
dc.subject	HOUSEHOLD CONNECTIONS
dc.subject	HOUSEHOLD CONSUMPTION
dc.subject	HOUSEHOLDS
dc.subject	INFRASTRUCTURE SERVICES
dc.subject	INTERNATIONAL WATER
dc.subject	INVESTMENT COST
dc.subject	INVESTMENT COSTS
dc.subject	IRRIGATION
dc.subject	LEAKAGE
dc.subject	LEVEL OF CONSUMPTION
dc.subject	LEVELS OF CONSUMPTION
dc.subject	LOW TARIFFS
dc.subject	LOW-INCOME HOUSEHOLDS
dc.subject	LOWER PRICES
dc.subject	MAINTENANCE COSTS
dc.subject	MARGINAL BENEFITS
dc.subject	MARGINAL COST
dc.subject	MARKET CONDITIONS
dc.subject	METER READING
dc.subject	METERING
dc.subject	NATIONAL WATER
dc.subject	NATIONAL WATER COMPANY
dc.subject	NUMBER OF CUSTOMERS
dc.subject	OPERATIONAL EXPENSES
dc.subject	PAYMENT FOR WATER
dc.subject	PERFORMANCE DATA
dc.subject	PERFORMANCE INDICATORS
dc.subject	PHYSICAL INFRASTRUCTURE
dc.subject	PIPE
dc.subject	PIPED WATER
dc.subject	POOR CONSUMERS
dc.subject	POOR HOUSEHOLDS
dc.subject	PRICE INCREASES
dc.subject	PRICE OF WATER
dc.subject	PRICE SIGNALS
dc.subject	PRIVATE OPERATORS
dc.subject	PRIVATE SECTOR PARTICIPATION
dc.subject	PROVISION OF WATER
dc.subject	PUBLIC FOUNTAINS
dc.subject	PUBLIC HEALTH
dc.subject	PUBLIC STANDPIPES
dc.subject	PUBLIC STANDPOSTS
dc.subject	PUBLIC TAPS
dc.subject	QUALITY WATER
dc.subject	QUANTITIES OF WATER
dc.subject	QUANTITY OF WATER
dc.subject	RESIDENTIAL CONSUMERS
dc.subject	RESIDENTIAL CUSTOMERS
dc.subject	RETAIL PRICES
dc.subject	SAFE WATER
dc.subject	SANITATION
dc.subject	SANITATION PROGRAM
dc.subject	SANITATION UTILITIES
dc.subject	SANITATION UTILITY
dc.subject	SERVICE DELIVERY
dc.subject	SERVICE PROVIDER
dc.subject	SERVICE PROVIDERS
dc.subject	SERVICE QUALITY
dc.subject	SEWERAGE
dc.subject	SEWERAGE AUTHORITY
dc.subject	SEWERAGE COMPANY
dc.subject	SEWERAGE CORPORATION
dc.subject	SEWERAGE SERVICES
dc.subject	SMALL TOWNS
dc.subject	STATE UTILITIES
dc.subject	SUBSIDIES FOR WATER
dc.subject	SUPPLY WATER
dc.subject	SUSTAINABLE WATER
dc.subject	TARIFF BLOCK
dc.subject	TARIFF CHANGES
dc.subject	TARIFF DESIGN
dc.subject	TARIFF INCREASE
dc.subject	TARIFF LEVELS
dc.subject	TARIFF POLICY
dc.subject	TARIFF REGIMES
dc.subject	TARIFF STRUCTURE
dc.subject	TARIFF STRUCTURES
dc.subject	TOLL
dc.subject	URBAN WASTEWATER
dc.subject	URBAN WATER
dc.subject	URBAN WATER SUPPLY
dc.subject	URBAN WATER SUPPLY SYSTEMS
dc.subject	URBANIZATION
dc.subject	USE OF WATER
dc.subject	UTILITIES
dc.subject	VALUE OF WATER
dc.subject	VOLUME OF WATER
dc.subject	VOLUMES OF WATER
dc.subject	VOLUMETRIC CHARGE
dc.subject	WASTEWATER CHARGES
dc.subject	WASTEWATER SERVICES
dc.subject	WASTEWATER SYSTEMS
dc.subject	WASTEWATER TARIFF
dc.subject	WATER BOARD
dc.subject	WATER CHARGES
dc.subject	WATER COMPANY
dc.subject	WATER CONNECTION
dc.subject	WATER CONSERVATION
dc.subject	WATER CONSUMPTION
dc.subject	WATER DEMAND
dc.subject	WATER INTAKE
dc.subject	WATER MARKET
dc.subject	WATER METERING
dc.subject	WATER POLICY
dc.subject	WATER PRICE
dc.subject	WATER SCARCITY
dc.subject	WATER SERVICE
dc.subject	WATER SERVICES
dc.subject	WATER SHORTAGE
dc.subject	WATER SUPPLIES
dc.subject	WATER SUPPLY
dc.subject	WATER SYSTEMS
dc.subject	WATER TARIFF
dc.subject	WATER TARIFFS
dc.subject	WATER USAGE
dc.subject	WATER USE
dc.subject	WATER USERS
dc.subject	WATER UTILITIES
dc.subject	WATER UTILITY
dc.title	Cost Recovery, Equity, and Efficiency in Water Tariffs : Evidence from African Utilities
dc.type	Publications & Research :: Policy Research Working Paper
dc.coverage	Africa
dc.coverage	Africa
dc.coverage	Africa