The source of the revenue stream (from consumers or from a limited number of large offtakers) influences the certainty, size and nature of that revenue stream, e.g. the risk of collecting revenues from users and the likelihood that the obligor will be available to pay on its obligations. "Fee" refers to a single or small number of purchasers of the offtake or service, while "Tariffs" refers to collection of revenues from a large number of consumers or users. The source of revenues will therefore specifically alter the mechanisms that the project company will need to implement to manage that risk, for example billing functions and collection methodologies. He will also have a critical influence on the credit enhancement and security rights that investors and financiers may require, for example where collection risk for the privatization of the obligor of the revenues is insufficient, the need for a score arrangements for the credit enhancement may arise.
The service delivery and revenue source columns could in theory be combined. They both relate to the relationship between the project company and individual consumers. However, often the financial and service delivery relationships are different, for example a home-based road (User-Tariff) and unavailability fee-based road (the User-Fee), these are very different structures that can be clearly differentiated by using separate columns for service delivery and revenue.