WRDMAP - Brochure
AN5.4 Tariff Setting for Small to Medium Water Supply Company
There is an increasing need to manage demand for water rather than just increasing supply, whether for domestic consumption, industry and commerce, or agriculture. Water pricing can be an effective means to reduce demand for, and improve the economic efficiency of, water use. In China water prices are still below the requirements for financial cost recovery and are generally too low to reflect its scarcity value and therefore do not have sufficient impact on demand for water. This has made it difficult for many water utilities to maintain infrastructure or expand their service to outlying and poorer areas or to operate in a manner that meets environmental standards. This guidance note was developed by the Ministry of Water Resources to help the management of small to medium size water supply companies (WSCs) to adopt demand management strategies as part of the ongoing development of Water Saving Society.
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