Benefits of Water Billing and Collection

1490 Words6 Pages
CHAPTER 13 BILLING AND COLLECTION 13.1 INTRODUCTION Revenue management system is an important aspect of any Water supply System as it governs the financial aspect. Besides fixing a tariff structure, billing and collection of revenue play an important part. 13.2 TARIFF FIXATION The water charges to be fixed by the utility take into account the ability of the system to meet the expenditure on the following heads. (i.e.) • • • • • Operating Cost (excluding establishment cost). Establishment Cost. Depreciation. Debt Services & Doubtful Charges. Asset replacement fund. Tariff structure should be fixed and revised periodically. Automatic increase of tariff periodically on index basis can also be adopted. Where the same authority also provides sewerage system, charges for this can also supply through Public stand post, may be charged and also be included as a percentage of the water charges. 13.3 CATEGORIES OF CONSUMERS The various categories of consumers are: i) ii) iii) iv) v) Domestic, Commercial (Business entities, Hotels, Industries etc.), Government Authorities, Partly Commercial, Bulk Consumers. Among the five categories, the domestic consumers are the privileged class of people in terms of supply of water and collection of taxes mainly because they use water for their healthy existence. The other categories of consumers largely use water while carrying out commercial/ business activities. Therefore, the distribution of cost incurred on the maintenance of such system to each class of consumers should be logically and appropriately determined with 323 reference to the level of service rendered. Finally, a projected income on account of water charges should take into account the various factors stated in the paragraph above. 13.4 METHODS OF WATER CHARGES The methods of levying water charges can be any one or more of the following: A.
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