Summary

In this Study Session, you have learned that:

• Water tariffs are needed to recover the costs associated with the treatment and distribution of drinking water.
• There are four main types of water tariff: uniform flat rate; single-block rate; two-part tariff; and the rising block tariff.
• In Ethiopia the rising block tariff is used for private taps and taps in industrial and commercial establishments. In this tariff, the cost of water increases with the volume used but consumption is measured in blocks, which are defined quantities of water use.
• In Ethiopia, a single-rate social tariff is used for public taps and hand pumps. This tariff is the same as the tariff for the lowest block in the rising block tariff.
• Water meters can be simple devices that require a person to read them (either manually or using a handheld computer) and generate a water bill. Alternatively, they can be smart meters that send data to the water utility automatically using wireless technology for preparation of a water bill by computer. Smart meters allow water usage to be monitored, making discovery of a leak easy.
• Microloans can be a way for low-income households to obtain their own private taps. Over time, this will reduce the proportion of their income spent on water, leaving more money for other needs of the household.