Tarrif


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Under the Water Act of 2016, Wasreb is required to establish Guidelines for tariff setting by water providers.

Gazette Notice for new tariffs – August 2023

  Tariff  Downloadable  Material   

The objectives of tariff review are to:

  • Ensure financial sustainability
  • Foster access to Safe Water as a Human Right
  • Promote efficiency in the delivery of water services
  • Encourage conservation
  • Ensure simplicity in the pricing structure of water.

The tariff review process is necessitated by the following by the factors

  • Dependence on subsidy which has become unsustainable.
  • Tariffs that outlived their usefulness.
  • Continued rise in cost of inputs.
  • Increments in cost of electricity, fuel and their spiraling effect.
  • Unsustainability of most WSPs and WSBs

Under the Licence, tariffs charged are meant to  accommodate the need to have cost recovery, cross subsidization, and where feasible the expansion of infrastructure.

The tariff review process focuses on balancing commercial and social interests in water service provision.  The fixing of tariffs considers justified costs, in order to  eliminate any costs that may result from inefficiency, and which should not be borne by consumers.

Wasreb has developed Tariff Guidelines with the objective of fixing tariffs that balance commercial, social and ecological interests thus ensuring access to all while allowing WSPs and WSBs to recover justified costs.

Recognizing that WSPs differ in category and size, the Guidelines address different requirements as follows:

  • Setting out approaches to tariff adjustment
  • Spelling out requirements that WSPs and WSBs should meet for tariff adjustment applications
  • Setting out methodologies for tariff review analysis, approval and subsequent adjustments over time

Thus, tariff adjustments enable WSPs to attain cost coverage of operations and maintenance, while improving performance in specified indicators. Gradually, adjustments are made to cover full cost recovery in order to ensure long-term sustainability.

The Company has applied for a Water & Sanitation tariff review through the Water Services Regulatory Board (WASREB). WASREB is a state agency mandated with regulating Water and Sewer charges nationally in consultation with the County Governments. The mandate includes consumer protection from exploitation and also ensures that water utilities operate with a cost-recovery tariff.

The existing Company tariff was approved in 2014 and expired in 2017. The company has been operating without a valid tariff since the year 2017. This was occasioned by the County’s vision to merge all the water utilities in the County. The County Government of Kiambu’s intention then was to have one harmonized tariff which was to be used by the merged County Water utility. For this reason, the process of renewing our tariff which we had already started was halted. The Company has been facing challenges in meeting its operational cost due to the high inflation since 2017.

However, in 2022 the regulator advised the County that for the merger to succeed, each utility has to have a valid tariff. The County gave the water utilities the go-ahead to proceed with the application for tariff review. The company consequently revived the process and submitted the required data to WASREB.

Data entry was completed and submitted to the regulator in July 2022. The Company has held negotiation meetings with the regulator and came up with a suitable tariff that will enable the Company to fully recover its operating costs and carry out minor investments.

After the negotiations are concluded, WASREB in collaboration with the County and the Company are required by law to conduct a public consultative meeting to get views from the public before the new tariffs are gazetted.

The public consultative meeting has been gazetted (See attached extract) and is scheduled to be held on 13th April 2023 at St Martin De Porres Catholic Church Karuri starting at 10:00 am. The meeting will also be conducted virtually for stakeholders who may not be able to attend physically. The Company has also provided more details on the tariff adjustment proposal on our website: www.karuriwater.co.ke.

The meeting will also be transmitted virtually through our Facebook page on that day. The Facebook link is https://www.facebook.com/100068600031851/live_videos/

As one of our key stakeholders, you are invited to attend and contribute Public Consultative Meeting.

Looking forward to your attendance.

 

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