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Tariffs

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Tariffs are generally set by the water or sanitation service provider or by national (or local) governments through national or state policy although the public or private sector can also calculate tariffs for an individual project, sometimes at the community level (Fonseca and Cardone, 2003).

Tariffs are designed for different purposes, and often contain some elements to address poverty.  The goals of a tariff vary and may include (Fonseca and Cardone, 2003):

* Raising enough revenues to cover specific costs, for example [[Operational and Minor Maintenance Expenditure (OpEx)|expenditure on operation and minor maintenance]], [[Capital Maintenance Expenditure (CapManEx)|capital maintenance expenditure]] etc.

* Making access to water and sanitation affordable for different income groups, which should take into account the ability to pay for water or sanitation service and the fact that there are major impacts for health, well-being and poverty alleviation targets.

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