Tariffs, Charges & Market Rules

TARIFF POLICY

The policy on tariff setting in Rivers State is that it should amongst other things:

* Ensure that water is distributed equitably.

* Allow for total cost recovery on the part of service providers.

* Ensure price discrimination.

* Ensure that consumers benefit from efficiency gains.

* Ensure that the inefficiency of the service providers is not passed on the consumers.


OBJECTIVES OF A GOOD TARIFF STRUCTURE

* Revenue sufficiency: cost recovery - sufficient revenue to pay for operations and maintenance costs as well as provide a return on capital.

* Cost reflectiveness: charging customers so as to limit consumption to efficient levels.

* Social acceptability: ensure that charges seem reasonable and that all customers, even those with low incomes are able to receive at least the basic service.


TARIFF STRUCTURE

Based on our tariff study, we decided to adopt a simple tariff structure with the following three components:


a. Category of users;

* Domestic

* Business

* Government & others

* Stand pipes


b. Charges for services

We adopted a binomial tariff – consisting of a fixed monthly charge and volumetric charge. The fixed monthly charge is billed regardless of consumption level.


Binomial tariff

* 3 blocks for domestic customers

* 2 blocks for Government and other users.

* No block for businesses and standpipes.


c. Charge for connection

* One time charge at the time of connection.


d. Other changes: Material costs such as pipes and accessories, meters, reconnection and labour.

    Water/Sanitation Tips

  • Ensure that your water closet is properly taken care of at all times.

  • Keep your surrounding clean. Mow your lawn regularly.

  • Turn off your fauset the moment you are through with fetching water.

  • Join in the GREEN revolution.

  • "Water does not resist. Water flows. When you plunge your hand into it, all you feel is a caress. Water is not a solid wall, it will not stop you. But water always goes where it wants to go, and nothing in the end can stand against it."― Margaret Atwood

  • "Human nature is like water. It takes the shape of its container."― Wallace Stevens

  • "High and fine literature is wine, and mine is only water; but everybody likes water."― Mark Twain