Tariff setting methodology for water supply and sewerage services in Bosnia and Herzegovina

The GoAL WaSH programme has, in cooperation with the state, entity, cantonal and local authorities, developed a tariff setting methodology for water supply and sewage services in Bosnia and Herzegovina. The methodology defines tariffs to enable recovery of all costs, including operating and investment maintenance costs, as well as capital investments costs. The methodology also includes detailed guidelines for developing a business plan.

Water utilities in Bosnia and Herzegovina are facing problems with high network losses and inadequate tariffs. The regular renewal and reconstruction of the network is often left without resources. Hence, network losses grow year after year hindering regular operations.

In 2016 the tariff setting methodology will be piloted in two water utility companies.