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Title: The impact of pricing of raw water on cost of treatment and ultimately on the cost of potable water
Authors: Otieno, Fredrick Alfred O. 
Dzwairo, Bloodless 
Keywords: Raw water;Potable water;Treatment;Pricing
Issue Date: 19-Nov-2012
The Department of Water Affairs and Forestry (DWAF) sells raw water to water boards,
generally at a fixed price determined annually. The cost of this water does generally not
take into account the quality that the water boards receive. Water boards are then
expected to treat this water to a certain specified standard for distribution to local
authorities which then supply consumers. Consumers are charged based on the
volume they consume, presumably a charge that would recover the cost of treatment
and other associated overheads, which are agreed upon in advance. The result of this
could be one of two things, namely that the consumers in different parts of the country
pay different rates or that the water boards may be operating at a loss.

Based on recent and ongoing research in the Vaal River system, this paper looks at the
implications of this on the final cost of treatment and ultimately on the cost to consumers
and suggests ways in which raw water could be priced to ensure fairness and spread of
burden to the consumers based on quality requirements.
Appears in Collections:Research Publications (Academic Support)

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