Mission_Doc_Vol2288075514300125 by keralaguest


									     Guidelines for deriving wastewater tariff structure in China

Parameters       Method of estimation
Starting Point   Two Part Fixed and Usage Tariff
                 Usage set to equal marginal costs
                 Fixed (balance) set to achieve Full Cost Recovery overall
Economic       Use Short Run Variable Cost (SRVC) for usage charge when water tariff is only
               Use Medium Run Variable Cost (MRVC) for usage charge when water tariff
               includes significant fixed element
               Use Long Run Variable Cost (LRVC) for usage charge when raw water is in
               scarce supply
               Use LRVC for usage charge for long run contracts
Price equity   Allocate fixed charge according to capacity of discharge to the system
PPP            Set base usage charge to reflect domestic pollution load
               Vary usage charge according to pollution load from industry
               No charges to customers who could not be served by system and who treat their
               own discharge, and discharge to a water course and comply with discharge
Administration Use the Two Part Tariff only if all or most customers are individually billed and
               If not, and if meters are used for non-domestic and apartment blocks, use a usage
               (volume) charge only.
               Identify individual users who do not use water company and monitored
               groundwater sources and estimate their consumption
               If meters are not used, apply a fixed charge only, based on estimated water
               If the benefits of a single guideline are believed to outweigh economic efficiency
               benefits in places where a two part tariff would be applicable, use a usage
               (volume) charge only
Affordability  If domestic connections are individually billed, decrease the total charge for a
               lifeline block to affordable levels
               If there is no individual billing, ask the local government to identify people at risk
               and ensure that their water and/or wastewater charges are affordable
Definitions    SRVC is short run variable cost and includes only consumables and daily paid
               MRVC is medium run variable cost and includes all non capital related company
               LRVC is all company costs including depreciation and return on capital. In other
               words it equals full costs and, if applied, means that there is no need for a fixed
               Marginal costs are unit costs applicable as throughput increases. As such they can
               be any of the above variable costs.

Differential tariff and metering in Jamshedpur
Source: http://www.financialexpress.com/news/Jamshedpur-to-become-first-city-in-east-

Customer metering and a volumetric tariff regime came into effect in Jamshedpur in 2007.
Jamshedpur Utilities & Services Co (Jusco) supplies potable, clarified and raw water to
consumers within the leasehold area of the city. The company supplies clarified and raw water
to industrial units like Tata Steel, Tata Motors, Lafarge, Tinplate Co of India, etc. Jusco has
around 26,000 direct consumers in the city, besides supplying potable water to 20,000 Tata
employees. The company supplies 40 million gallons of potable water a day to the city and
another 40 million gallons of both clarified and raw water to mainly industrial consumers. The
new tariff system aims at providing 24- hour water supply to consumers from the thrice-a-day
supply at present and also at making the consumer pay for what he consumes. Jusco,
irrespective of the volume of water consumed, has so far been charging its consumers a flat
rate, which for a majority of domestic consumers is fixed at Rs 140 a month.

Under the tariff system, domestic consumers will have to pay Rs 5 a kilolitre (kl) for monthly
consumption of up to 10 kl, Rs 6 a kl for between 11 kl and 25 kl, Rs 8 a kl for between 26 and
50 kl and Rs 10 a kl above 50 kl. The same for bulk domestic consumers has been kept at Rs 6
a kl for consumption of up to 25 kl, Rs 8 a kl for between 26 kl and 50 kl and Rs 10 a kl above
50 kl. Similarly, for commercial consumers, between Rs 8 a kl and Rs 12 a kl for monthly
consumption of between 50 kl and 'more than 100 kl'. Industrial consumers are to pay Rs 12.50
a kl for up to 500 kl and Rs 15 a kl above 500 kl. A meter charge ranging between Rs 25 and
Rs 300 a month would be levied.

                                     Annexure IX
                     Water use efficiency: A case of Jamshedpur
Source: http://www.ccsindia.org/ccsindia/interns2006/The%20Customer%20Citizen%20-

Jamshedpur Utilities and Services Company Limited (hereafter to be referred as JUSCO),
a wholly owned subsidiary of Tata Steel, is now responsible for the provision of civic
Centre for Civil Society amenities and municipal services in Jamshedpur. It was
incorporated on 25 August 2003 under the Companies Act, 1956. JUSCO produces raw
water, clarified water, potable water and treated effluent. These products conform to the
standards set by WHO and BIS. The rate of water consumption in Jamshedpur is among
the highest in the country. As compared to the national average of 125 litres per person
per day, water consumption in Jamshedpur is 261 litres per person per day. The same
figure for Delhi is 100 litres; for Mumbai, 200 (see graph below). The availability of
water during a day In Jamshedpur (eight hours per day) is also much higher than the
national average (5.6 hours per day). In Delhi this figure stands at 4 hours per day; in
Mumbai, 5; and in Chennai 1.5. It provides ‘river-to-river’ water and wastewater
management. JUSCO provides approximately 40, 000 water connections, half of which
cater to Tata Steel employees. Every day, 55 million gallons of water is treated10. Tata
Steel employees are provided water for free; others have to pay a minimum of Rs 120 per
month. Water charges are determined on the basis of the size of the plot and the number
of floors in the particular building.To maintain water quality, over 5, 000 samples of
water from customer taps, water tankers, storage tanks and treatment works are analyzed.
All the water and wastewater services currently maintained by JUSCO have been built by
Tata Steel (first under the supervision of Town Services and now under JUSCO) since
1934. These include various projects such as
• Dimna Reservoir, with a capacity of 34, 000 ML
• Raw Water Intake and Pumping Station, with a capacity of 342 MLD
• Potable Water Treatment Plant, with a capacity of 168 MLD
• Clarified Water Unit with Pumping station, with a capacity of 136 MLD
• 12 Towers for water distribution with a combined storage capacity of 46 ML and a


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