Abstract

World population growth causes increasing of demand for clean water. On the other hand, at this moment, the Public water Utilities (PAMs) in various cities, especially in developing countries, unable to meet the needs of the entire population, especially poor families. Usually the price of piped water is very low. On the other hand, the poor that no access to piped water pay more than the rich that have access. Usually, PAMs cannot serve the poor because they do not have fund to develop the new network. Furthermore, increase of water rates is necessary to collect money for investment and service improvement. The tariff management must ensure all objectives of public utilities such as: all families have minimum needs; water conversion; as well as PAMs have required profits are important in public water utilities. Very low tariff that make PAMs do not receive minimum profit for investment in services and increase coverage area also directly make other objectives fail. The tariff plan of PAM Bandung municipality (PDAM) period 2006-2010 is used to describe tariff management planning. Actual condition in 2010 is also provided to compare the planning and result. Because limitation of data, this study assume the planning is implemented. Based on the data, this study concludes that the tariff management of PDAM is success increase profit but fail improve household connections. Ironically, the connections for the household go down and connections for the business go up. The tariff of PDAM, although they manage the increasing of tariff, cannot be categorized as the tariff increase to raise coverage area but increase to adjust the inflation. Keywords: water, public water utilities (PAMs), tariff, poor household

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