1 AIT Asian Institute of Technology

A study of tariff (water rate) determination in a municipal water supply system

AuthorLim, Paul B. G.
Call NumberAIT RSPR no. EV-85-6
Subject(s)Municipal water supply--Economic aspects
NoteA research study submitted in partial fulfillment of the requirements for the degree of Master of Engineering, School of Environment, Resources and Development
PublisherAsian Institute of Technology
AbstractBangkok metropolitan Water Works Authority (MWWA) suffers from much financial difficulties. Its present operations rely heavily on subsidies from the Royal Thai Government and its present expansion programs are severely affected by delays and adverse economic changes. Master plan findings of both CAMP, DRESSER and McKEE(1970) and NIHON SUIDO (1984) stressed on the restructuring of its present water tariff policy to ensure its viability. However, such proposals encountered opposition from the political sidelines. This study attempts to rationalize practical yet equitable rates to be imposed by the MWWA for a profitable perpetuation of the system. Study was based on the classification of the present MWWA's two category differentiation of its customers into a three category one. Moreover, direct comparisons to its existing practice was also done. Study conditions were based on the system's economies of scale (0.6 - 0.9) and loan servicing interest rates of 5 -20%. Findings, based on data collected from the MWWA provided simple relationships for capacity cost equations or both capacity expansions and capital and operation and maintenance. Finally, average unit costs values calculated using the Base Extra Capacity Approach were compared critically with the existing and proposed rates by both the establishment and Master Plan Report. These indicated that present rates do not reflect present economic conditions and undercharging of all customers is very predominant.
Year1985
TypeResearch Study Project Report (RSPR)
SchoolSchool of Environment, Resources, and Development (SERD)
DepartmentOther Field of Studies (No Department)
Academic Program/FoSEnvironmental Engineering and Management (EV)
Chairperson(s)Lohani, B.N.
Examination Committee(s)Nguyen, Cong Thanh ;Vigneswaran, S.
Scholarship Donor(s)DAAD (Federal Republic of Germany)
DegreeResearch Studies Project Report (M. Eng.) - Asian Institute of Technology, 1985


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