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Application to be made for fixation of tariff:
The service provider shall make an application in the prescribed format, accompanied by the following details, to the Commission on having the tariff fixed:
- Criteria on which the proposed tariff has to be fixed,
- If the rate of the tariff has to be changed, grounds thereof,
- A comparative price index so prepared as clearly reflecting the tariff being collected previously and the rate of proposed tariff,
- Reasonable profit that the service provider may earn from the tariff proposed by the service provider, also taking into account of the operational and repair and maintenance expenses of the service, depreciation, repayment of principal and interest
- A comparative analysis of yearly increase in operational expenses of the service and the proposed tariff,
- Grounds set in relation to providing concession of tariff to the users, who cannot afford the proposed tariff and likely additional burden on the other users as a result of such tariff concession,
- Where the service provider has obtained license from or entered agreement with anybody established under the prevailing laws to operate the service, a copy of such a license or agreement to be attached with the tariff revision proposal.
- Such other matters as prescribed
Tariff Fixation Procedure :
- After the Commission has examined the application pursuant to Section 12, the Commission shall fix the tariff in accordance with the rate of tariff proposed by the applicant or with amendment, within Sixty days after the date of application. Provided that, the Commission shall not fix the tariff in a manner that it differs by more than Twenty percent of the rate of tariff proposed by the applicant.
- In fixing the tariff pursuant to Sub-section (1), the Commission shall also specify the date of application of the fixed or changed rate.
- In fixing the tariff pursuant to Sub-section (1), the Commission may fix the tariff also based on the other terms and conditions specified at the time of entering into the agreement or issuing the license, in the case of a service provider who operates the service upon obtaining license or entering into agreement pursuant to the prevailing laws, in addition to the criteria as referred to in Sections 10 and 11.
- Prior to fixing the tariff pursuant to Sub-section (1), the Commission shall publish a public notice setting out the proposed rate of tariff, in such a manner as prescribed.
- If, after the publication of a notice as referred to in Sub-section (4), any suggestion or comment is received from the users about the proposed rate of tariff, the Commission may, in consultation with the representatives of users' associations on that matter, also take such suggestion as a ground for fix in g the tariff.
- If any person purchases from or sells to the service provider the bulk water supply for the water supply or sanitation service, or vice versa, the cost price or selling price of the water to be so purchased or sold shall have to be got prior approved by the Commission.
- Notwithstanding anything contained elsewhere in this Section, the Commission may fix different tariffs for the users w ho purchase the bulk water supply and the ordinary users.
- The other procedures relating to the fixation of tariff shall be as prescribed.