Using tariff structures as a demand management instrument: the case of Kampala

Urban population explosions in developing countries, compounded by impacts of climate change have resulted into urban water infrastructure services being placed under a lot of pressure. In response, urban water managers and policy makers should consider water demand management strategies, in addition to supply options. This study used data from recent studies in Uganda and parallel surveying findings from the city of Cape Town to model a water conserving tariff for domestic consumers in the city of Kampala, Uganda. Results from the model show that 15% of water produced in Kampala could be conserved, and the utility’s revenue increased by 8%, through demand-responsive tariffs. Water conservation tariffs may have greater potential benefits in cities of developing countries where water services are excessively under-priced.