Transparent prices/fees/charges, pricing policy

Providing access to information on price structure and setting.

DESCRIPTION

Price transparency entails providing full access to information on price structure and price setting to consumers, customers and suppliers.

PURPOSE & LINK TO INTEGRITY

Fair and transparent prices prevent overpricing of products and services. This increases consumers’ and suppliers’ readiness to pay.¹

Overpricing is often a consequence of corruption. If it can be countered, the means to finance questionable activities can be reduced.¹

KEY REQUIREMENTS

Does your organisation have adequate cost calculation tools to create internal transparency before communicating price structures to customers?

HOW TO

Overpricing can be countered in numerous ways:²

Developing a sector-specific price index for goods and services (e.g. pipes, borehole-drilling, pipe-laying etc.) to counteract inflated prices.
Monitoring and comparing costs for standard commodities. Here, official tariff guidelines (as described above) are very helpful.
Inviting customers to obtain at least two cost estimations from different enterprises.
In case the company or organisation has overcharged a customer, a refund is being issued which should be accompanied by an apology.

KEY GUIDING DOCUMENTS

Nordmann, D., Peters, P. & Werchota, R., 2013, Good Governance in the Kenyan Water Sector, Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, Germany, https://www.giz.de/fachexpertise/downloads/giz2012-en-watergovernance-kenya.pdf, accessed 07.12.2015

FURTHER READINGS

Connor, 2009, Price-fixing overcharges

FULL REFERENCES

UNDP, 2011, Fighting Corruption in the Water Sector, United Nations Development Programme (UNDP), USA, http://www.undp.org/content/undp/en/home/librarypage/democratic-governance/anti-corruption/fighting_corruptioninthewatersector.html, accessed 07.12.2015
Nordmann, D., Peters, P. & Werchota, R., 2013, Good Governance in the Kenyan Water Sector, Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, Germany, https://www.giz.de/fachexpertise/downloads/giz2012-en-watergovernance-kenya.pdf, accessed 07.12.2015