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

dc.contributor.author Banerjee, Sudeshna
dc.contributor.author Foster, Vivien
dc.contributor.author Ying, Yvonne
dc.contributor.author Skilling, Heather
dc.contributor.author Wodon, Quentin
dc.date.accessioned 2012-03-19T18:41:14Z
dc.date.available 2012-03-19T18:41:14Z
dc.date.issued 2010-07-01
dc.description.abstract 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. en
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.uri http://hdl.handle.net/10986/3868
dc.language English
dc.relation.ispartofseries Policy Research working paper ; no. WPS 5384
dc.rights CC BY 3.0 IGO
dc.rights.holder World Bank
dc.rights.uri http://creativecommons.org/licenses/by/3.0/igo/
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 en
dspace.entity.type Publication
okr.date.disclosure 2010-07-28
okr.doctype Publications & Research :: Policy Research Working Paper
okr.docurl 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
okr.globalpractice Water
okr.globalpractice Energy and Extractives
okr.identifier.doi 10.1596/1813-9450-5384
okr.identifier.externaldocumentum 000158349_20100728131236
okr.identifier.internaldocumentum 12593169
okr.identifier.report WPS5384
okr.language.supported en
okr.pdfurl http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2010/07/28/000158349_20100728131236/Rendered/PDF/WPS5384.pdf en
okr.region.administrative Africa
okr.region.administrative Africa
okr.region.geographical Africa
okr.topic Water Supply and Sanitation :: Town Water Supply and Sanitation
okr.topic Water Supply and Sanitation :: Urban Water Supply and Sanitation
okr.topic Energy :: Energy Production and Transportation
okr.unit Development Research Group (DECRG)
okr.volume 1 of 1
relation.isAuthorOfPublication 4ce1f899-ff9c-5b54-966e-dd0e07496330
relation.isAuthorOfPublication 059954cc-a249-5318-9829-61a08ded2637
relation.isAuthorOfPublication 145013f5-76a3-5525-874a-d3ab1b1db9c5
relation.isSeriesOfPublication 26e071dc-b0bf-409c-b982-df2970295c87
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