The tariff system is considered the main foundation for the sustainability of water service providers in Palestine. This study was conducted in order to determine the availability of the components of the tariff system for the water service providers in Palestine in addition to their financial sustainability.  The study included 272 water services providers in Palestine through data available to the Water Sector Regulatory Council WSRC, The study found that there is a weakness in the availability of the considerations of the tariff system at gradual levels, especially with regard to the use of accounting bases and considerations of the elements used in the costs calculation, and reduce losses and take into account the social aspects and ability and affordability to pay. The study also showed a weak level of financial sustainability for service providers, particularly in the areas of collection, debt accumulation, and inability of fixed revenues to cover fixed expenses, in addition to the inability of revenues to cover expenses and the increase in the percentage of losses. Based on the results of the study, the study recommended studying the ability of consumers to pay and dividing the categories of consumption domestic, industrial, commercial – tourism, and loss study, and mechanisms to improve the percentage of losses and compare fixed costs with fixed income and depreciation of assets as one component of water costs. This will enabling appropriate determination of costs elements during financial periods and the ability to prepare reports that are more capable of assisting service provider departments to make appropriate decisions. In addition, for improving collection rate considerations should be taken into account when preparing the tariff and the ability to collect debts through the use of prepaid counters, which proved useful in some joint service councils.

Keywords: Water Tariff, Palestinian Water Authority, Water Sector Regulatory Council, Cost Recovery, Financial Sustainability

Conference Title

المؤتمر العلمي الثاني لكلية الإقتصاد والعلوم الإجتماعية نحو رؤية شاملة لتعزيز البنية التحتية الاقتصادية في فلسطين بعنوان

Conference Country

Palestine

Conference Date

April 10, 2019 - April 10, 2019

Conference Sponsor

جامعة النجاح الوطنية