Module-c community Based Financial Management

Monthly Water Tariff per household: 3.70 x 2.25 = Birr 8.35 

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Ministry of Water, Irrigation and Electricity 
 Operation and Maintenance Management Manual 
Training Module - D 
Community Based Financial 
Management 
 
DEMEWOZ CONSULTANCY 
30
Step - 6: 
Setting 
Tariffs for 
WASHCO
 
 
Repeat the exercise in groups but this time focus on setting the tariffs for the 
participants‟ WASHCO. Based on the exercise the annual budget that was 
developed in Session - C2: Preparing an Annual Budget. 
Note: 
 Convert the annual costs to average monthly costs; 
 If the quantity of water consumed per water point/hand pump or per 
household is not known, then make some reasonable assumptions. 
Let each group present their draft WASHCO tariff plan 
Let the group explain about how they arrived at the figures, what were the 
considerations? Why they think the tariffs would work for their project etc. 
Facilitator should direct the discussion towards a consensus on the tariff plan. 
Note the following challenges and ask participants to reflect on how these 
factors should be incorporated into the tariff plan: 
1. Seasonality of water availability (for seasonal sources) 
2. Seasonality of demand 
3. Unaccounted for water (or Non-revenue water). This is water that is 
2. produced but does not appear in any consumer meter 
3. Non-payment 
4. Vulnerable groups who could be considered for exclusion from 
5. 
payments
Step 7: Action 
Plan 
For 
Dissemination 
And 
Implementation 
of Tariff Plan
 
 
The proposed Tariff Plan has to be explained to the management committee, the 
WASHCO membership and the consumers. 
Make a Plan of Action that deals with: 
 Dissemination/explanation of the proposed Tariff Plan; 
 Approval of the Tariff Plan; 
 Implementation of the Tariff Plan; 
 Monitoring of the revenues to see whether the tariff plan has resulted in the 
revenues that are expected/required.