Prices and Taxes
Tariffs and fees paid by users for
services should at least cover all operating costs and should also cover
renewal costs and the costs of managing water resources for the benefit of
citizens. Tariff rates for different customers may vary based on their ability
to pay. Income from fees may be put into a 'solidarity fund' which can be used
to balance the needs of upstream and downstream users, and to subsidise poorer
social groups. Because customers are often widely spread geographically,
systems to collect payments can be costly and complicated, especially if the
total revenue is small.