NYEWASCO Adjusts Tariff In Favour Of The Poor
The charges have reduced for these categories in keeping with WASREB’s safeguard for the interests of the poor as categorized by the level of consumption, who are the majority
Nyeri Water and Sanitation Company, NYEWASCO, has adjusted tariffs on water consumption in the county after a survey done by Water Services Regulatory Board, WASREB, found out that 72% of the consumers live in poverty.
The research also found out that the group of customers consume a maximum of 6 units per month, which therefore drove the company into reviewing the tariffs.
“The charges have reduced for these categories in keeping with WASREB’s safeguard for the interests of the poor as categorized by the level of consumption, who are the majority,” said Managing Director, NYEWASCO.
“However, the rest of the costs are structured to be borne by the other categories and therefore their rates have increased especially for the government institutions and large consumers,” he added.
The following are the benefits of the proposed tariff to the customers.
• In case of no consumption, one will pay a small standing fees of Ksh. 50 only and not the current Ksh. 368.40 or Ksh. 686.80 equivalent of 10 units.
• The water tariff for water kiosks will remain the same i.e. Ksh. 1 for 10 litres.
• Sewer charges will be reduced for domestic users by charging 75% of the quantity of water consumed. This has been reduced from 100%.
• The current tariff charges the same price for sewer and water. The proposed tariff will charge a separate rate for sewer which is lower than that of water for all the categories. It is 20% lower on average for the domestic customers.
• Therefore, Sewer Charges for domestic customers will be reduced to an average 60% of water charges. (i.e. 75% of 80%)
• Minimum charges for low consumption of up to 6 units is Ksh. 332 for unsewered connections and Sh.534.50 for sewered connections down from the current Sh.368.40 and Sh.686.80 respectively.
• For Business Accounts, Minimum charges for low consumption of up to 6 units is Ksh. 500 for unsewered connections and Sh.812 for sewered connections down from the current Sh. 527.70 and Sh.1,005.40 respectively.
Key expected Impacts on Service Delivery
• The cost recovery tariff will enable the company to sustain the achieved service delivery levels in terms of efficiencies and effectiveness across board.
• The proposed tariff will make it possible for the company to upgrade the pipeline to improve water supply to the residents of Kihuyo, Mweiga, Ikumari and Ngangarithi among others
• It will enable the company to reduce water losses further to 12%
• It will assist the company in putting in place measures to maintain 100% drinking water quality that NYEWASCO is known for.
• This will also enable the company to implement automation of its systems to assure its customers of accurate, timely and consistent billings.
• This proposed tariff will enable the company to increase its sewer coverage from 28% to 40%.
The average projected revenue under the new tariff for the 5 years is Ksh. 629,056,983.
The current prices projecting a growth rate of 7.5% per annum over the same period of time would generate an average revenue of Ksh. 553,936,340.22 reflecting an increment of 13.56% overall.