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NWASCO receives tariff adjustment proposals

• NWASCO has been applying the Cost Recovery model since 2000.
• Water and Sanitation Tariffs for all 11 water utility companies have not been adjusted since 2020.
• Tariff adjustments are important for the Service providers to meet the cost of service provision.

National Water Supply and Sanitation Council (NWASCO) says it has received tariff adjustment proposals from the 11 Water Utility firms in the country, subject to approval after consultation with customers.
NWASCO Director Kelvin Chitumbo however expressed concern over social media reports regarding the planned adjustment of water and sanitation tariffs using the Cost Reflective model.
Mr. Chitumbo stated that NWASCO has been applying the Cost Recovery model since it started operating in 2000, as opposed to the Cost Reflective model, putting into consideration both social and consumer interests as well as service providers.
He noted that Water and Sanitation Tariffs for all the 11 water utility companies have not been adjusted since 2020 despite increases in the electricity tariffs and other input costs resulting in the declining of income for the service providers thereby affecting service provision.
“The Water and Sanitation Tariffs for all the 11 water utilities under the NWASCO mandate have not been adjusted since 2020 despite increases in the electricity tariffs and other input costs such as infrastructure development, purchase of chemicals and labour resulting in the dwindling of income for the service providers thereby negatively impacting on service provision. Labour costs increased due to the requirement to comply with new labour laws.”
“The Cost Recovery model is preferred for the water and sanitation sector as it allows for the use of cross subsidies that also benefit the low income citizens,” he said.
Mr. Chitumbo added that tariff adjustments are important for the Service providers to meet the cost of service provision, sustainability and viability, therefore approval of tariff adjustments is based on service providers meeting the set out conditionalities.
“As the new board of the National Water Supply and Sanitation Council is inducted following its appointment, the issue of Tariffs is a key item for their consideration,” Mr. Chitumbo stated.

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