Water Tariff
A water tariff is a pricing structure that determines how much customers pay for their water usage. It is typically set by local governments or water utility companies and can vary based on factors such as the amount of water consumed, the type of customer (residential or commercial), and the region. The goal of a water tariff is to ensure that water resources are used efficiently and sustainably.
Water tariffs can be structured in different ways, including flat rates, tiered rates, or variable rates. A tiered rate system charges customers more as their water usage increases, encouraging conservation. In contrast, a flat rate charges a single price regardless of usage. These pricing strategies help manage demand and fund water infrastructure maintenance and development.