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Tariffs and willingness-to-pay
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Tariffs and willingness-to-pay
Ascertaining the demands and willingness to pay of end-users and estimating the cost of provision of services is crucial to selecting tariff strategy. COWI designs market research and tariffs for infrastructure services worldwide.
When planning to provide better services to end-users, a utility needs to set an appropriate tariff, evaluate expected future sales and decide upon the level of investment.
COWI helps customers gain detailed knowledge of end-users' preferences and their financial situation.
Knowledge about the end-users assists decision-makers to ensure stable and financially viable services through choosing the right combination of services and tariffs.
Demand for service
Infrastructure services where payment is based on unit consumption encourages efficient use of resources.
COWI has expertise and experience in analysing demand and price sensitivity by using advanced econometric methods.
Affordability
Infrastructure services are basic services needed by all households.
Electricity, gas and water are critical for the welfare of each household, while solid waste and sanitation services, in addition, influence the entire population through environmental and health benefits.
Therefore, affordability for end-users is important. We assess the affordability issue before and after a reform, and give advice on the effectiveness of possible subsidy schemes as well as their social and financial consequences.
Want to know more?
Carsten Glenting
Head of Department
Tel. +45 45 97 29 55
cag@cowi.dk