This paper describes a new method of utility pricing – Variable Unit Pricing (VUP) – that results in both economic efficiency and cost recovery for a variety of supply situations faced by water utilities. The main advantage of VUP – compared to Increasing Block Rates – is that its parameters...

This paper describes a new method of utility pricing - Variable Unit Pricing (VUP) - that results in both economic efficiency and cost recovery for a variety of supply situations faced by water utilities. The main advantage of VUP - compared to Increasing Block Rates - is that its parameters can...