Is there a good software model for calculating the most effective Tariffs for an urban area?

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I am carrying out a tariff study for a water and sewerage company in Kenya to develop a cost effective tariff that will cover all costs and a loan repayment. Your suggestions much appreciated.
 

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6 Answers

  1. @Bonga, We have received requests for more information in order to answer your question. "There are numerous of tariff models; most of the water companies use their own model. where is it for? Cashflow calculations, Balance sheet? What kind of tariff you want to calculate? Average, incremental? Please provide more details of your particular case. Thank you

  2. Dr Raman saravananeand converge to rea

    Pl before proceed to the model for tariff, develop certain correlations among available data / variables  over past few years and then converge to real field data interpretation. This could  be an exercise for a real fit & the eventual model would be oriented to its accuracy.   

    Thanks Raman

     

  3. Tariff model

    There is no available commercial software, to the extend of my knowledge, since the tarif design is more an art than a science: it has to consider political decisions (i.e. specify subsidies for specify groups), financial decisions (what do you want to recover with the tariff), social decisions (should every segment of the population pays the same rate) and environmental decision (protect the resources, discourage pollution), ...

    Like the other answers, I develop a Excel economic model in my tariff studies, based on a series of assumptions that can be adjusted according to the priorities and decisions of the contracting agency.

    I can provide more details on request on my email: alain@mathyswater.ch

     

  4. Excel

    Probably you have already done this yourself, but I always calculate tariffs in Excel for which I develop a financial model. This financial model is based on a standard model that I created in the past  (based on the FAST standard).

    I adapt this standard to local needs, i.e. local tariff regulations, the tariff methodology that we choose to use, available data at the utility, etc. The model is "dummy-proof", so that the utility is able to use the model in the future and continue calculating tariffs.

    This means that the utility only needs to adapt the data in 1 or max. 2 input sheets, while the results (tariff and graphs regarding cashflow and profit) are presented in a dashboard. The dashboard also allows for scenarios to be analysed. The complex part, the calculations, are separated. The utility can have a look at the calculations, but does not need to adapt anything in these sheets.

  5. Tariff calculation option

    I have tariffs embedded in the CBA model I developed; this allows me to get a long-term view and take into account most if not all factors influencing the future development of the company (and of the area covered).

    Should you be interested, please contact me at cornelia.iliescu@xandergroup.ca

    Kind regards and best of luck,

    Cornelia