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Title: The Effect of Tariff Policy on Financial Performance of A Public Water Utility A Case of National Water and Sewerage Corporation
Authors: Lillian Naiga Toogo and Paddy Mugambe
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Lillian Naiga Toogo1 and Paddy Mugambe2 1. School of Management Sciences, Uganda Management Institute, Kampala Uganda 2. School of Business and Management, Uganda Management Institute, Kampala Uganda
MLA 8 Toogo, Lillian Naiga, and Paddy Mugambe. "The Effect of Tariff Policy on Financial Performance of A Public Water Utility A Case of National Water and Sewerage Corporation." Int. j. of Social Science and Economic Research, vol. 9, no. 12, Dec. 2024, pp. 5965-5980, doi.org/10.46609/IJSSER.2024.v09i12.020. Accessed Dec. 2024. APA 6 Toogo, L., & Mugambe, P. (2024, December). The Effect of Tariff Policy on Financial Performance of A Public Water Utility A Case of National Water and Sewerage Corporation. Int. j. of Social Science and Economic Research, 9(12), 5965-5980. Retrieved from https://doi.org/10.46609/IJSSER.2024.v09i12.020 Chicago Toogo, Lillian Naiga, and Paddy Mugambe. "The Effect of Tariff Policy on Financial Performance of A Public Water Utility A Case of National Water and Sewerage Corporation." Int. j. of Social Science and Economic Research 9, no. 12 (December 2024), 5965-5980. Accessed December, 2024. https://doi.org/10.46609/IJSSER.2024.v09i12.020.
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ABSTRACT: This study examined the effect of tariff policy on the financial performance of a public water utility. The objectives of the study were: to establish the effect of tariff indexation on financial performance of a public water utility and to establish the effect of tariff rates on financial performance of a public water utility. A cross-sectional research design was employed, using a case of National Water and Sewerage Corporation. A sample of 92 respondents was selected from a population of 120 participants using simple random sampling. Questionnaires and Interview guides were used to collect the data. Quantitative data was analyzed using correlation and regression analyses to establish the relationship between the variables. Qualitative data was organized into narratives and analyzed to draw conclusions in addition to the quantitative data. The study findings revealed that there was no statistically significant relationship between tariff indexation and financial performance (r = .092**, p = 0.415). The study further revealed that there was a significant relationship between tariff rates and financial performance (? = 0.477, t = 4.567, p = 0.000). This implies that when the tariff rates are favorable, a public water utility will be able to attain improved financial performance in its operations. The study concluded that tariff rates affect the financial performance of a public water utility. Favorable rates attract more clients hence improved performance. The study recommends that a public water utility, such as NWSC, should ensure that there is tariff policy clarity to enhance its financial sustainability and operational effectiveness. It must ensure that the tariff rates are favorable to their clients. Future studies should explore the effect of tariff structure on financial performance of a public water utility.

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