Executive Summary
This document presents the submission for a reset of the National Water Commission’s tariffs and service standards, from January 2019 to December 2021. This executive summary first reports the tariff increase that would be needed for full cost recovery. NWC then argues that tariff increases at this level would not be affordable to poor or middle-class customers. To ensure affordability, NWC requests a tariff structure that covers its operating expenses, depreciation, and loan interest, but does not provide a return on equity. Changes in the tariff structure to ensure that water for basic needs is affordable even to the poorest households, and that large users are kept on the system, are also proposed.
