ታሪፍ መመሪያ

Introduction

This guideline outlines the principles and procedures for setting tariffs for water supply and sewerage services in Dire Dawa. The objective is to establish a fair, equitable, and sustainable tariff structure that covers the costs of providing these essential services while promoting water conservation and sanitation.

Key Principles

1. Cost Recovery: Tariffs should be sufficient to cover the full cost of providing water supply and sewerage services, including operation, maintenance, capital investment, and administrative expenses.
2. Equity: Tariffs should be equitable, meaning that they should be distributed fairly among different customer categories based on their consumption levels and ability to pay.
3. Affordability: Tariffs should be affordable to low-income households, while still ensuring the financial sustainability of the water utility.
4. Efficiency: Tariffs should encourage efficient use of water and promote conservation measures.
5. Transparency: The tariff-setting process should be transparent and involve public consultation to ensure understanding and acceptance.

Tariff Structure

The tariff structure should consist of the following components:

1. Fixed Charge: A fixed charge per connection, regardless of consumption, to cover fixed costs such as meter reading, billing, and administrative expenses.
2. Consumption Charge: A charge based on the volume of water consumed, to cover variable costs such as treatment, pumping, and distribution.
3. Sewerage Charge: A charge based on the volume of wastewater discharged, to cover the costs of sewage collection and treatment.

Tariff Categories

Customers can be categorized based on various factors, such as:

• Residential: Households
• Commercial: Businesses, offices, shops
• Industrial: Manufacturing industries
• Institutional: Schools, hospitals, government offices

Different tariff rates can be applied to each category based on their specific consumption patterns and ability to pay.

Tariff Adjustments

Tariffs should be reviewed periodically to ensure that they remain fair, equitable, and sustainable. Factors to consider for tariff adjustments include:

• Inflation: Adjusting tariffs to account for changes in the general price level.
• Cost Changes: Adjusting tariffs to reflect changes in the cost of providing water and sewerage services.
• Economic Conditions: Considering the economic situation of the community and its impact on affordability.

Water Conservation Measures

To encourage water conservation, the following measures can be implemented:

• Time-of-Use Tariffs: Charging higher rates during peak demand periods to discourage excessive water use.
• Tiered Tariff Structure: Charging higher rates for increasing levels of consumption to incentivize conservation.
• Public Awareness Campaigns: Educating the public about the importance of water conservation and providing tips on how to reduce water usage.

Revenue Forecasting and Financial Planning

Accurate revenue forecasting is essential for financial planning and decision-making. The water utility should develop a robust revenue forecasting model that considers factors such as population growth, economic trends, and tariff adjustments.

Conclusion

By following these guidelines, Dire Dawa can establish a fair, equitable, and sustainable tariff structure for water supply and sewerage services. This will ensure the financial sustainability of the water utility, promote water conservation, and contribute to the overall well-being of the community.