In line with the National Water Policy, Water Supply and Sanitation tariffs are gradually increased in order to enable commercial utilities to move towards full cost recovery in the long-run. On the other hand, CUs are also expected to be more efficient in their operations so as not to pass on the cost of inefficiencies to the customers.

NWASCO takes into account several considerations prior to the approval of tariffs these include utility performance, the impact of the tariff on the consumers, public opinion and affordability.  In approving tariffs, NWASCO may impose such conditions as it deems fit.

Providers are required to follow a strict process in order to apply for a tariff adjustment as contained in the Tariff Setting Guidelines. Among the mandatory requirements is that providers must carry out public consultations prior to applying for approval for a tariff adjustment from NWASCO.