In certain rural areas of developing countries, a flat fee is charged. Block tariffs have a step-wise structure. Understanding both water use and consumption is critical to evaluating water stress. 0000001433 00000 n Notes: 99% all residential consumers use less than 150 m3 per month. Charges can be set depending or not from the volume of water consumed. 0000001590 00000 n IDRC Research Paper, WHITTINGTON, D. It comprises construction costs, amortisation expenses and provisions for the replacement of all water collection, treatment and distribution facilities, as well as the cost of treatment, operation and maintenance, including that of the pipe network, administrative and customer management services (when they exist), and resource preservation costs. The purpose of this paper is to provide the reader with a better understanding of the main issues involved in the design of W&S tariffs. This allows you to quickly navigate to the content of your particular interest while promoting the holistic understanding of sustainable sanitation and water management. 160 L person/day). Interesting 2-page brief on water pricing problems. Two parts tariffs are widely promoted by the World Bank, aim at recovering costs and achieving economic efficiency. The term is also often applied to wastewater tariffs. The design of the lifeline block is a delicate issue as it is rife with social implications. 2. Water pricing reflects the cost of producing clean water. Perspectives are different frameworks from which to explore the knowledge around sustainable sanitation and water management. Moreover, a few rare countries such as Ireland and South Africa supply all or part of the water free of charge, as it is financed by the state through taxation. Water use is priced per kilolitre (1,000 litres). DIAL, WHITTINGTON, D. In the case of La Paz, the limit of the first block of consumption is set at 30 m3, which is considered to be too large (for a family of 5, it means that they can use 200L of water per day at the lowest tariff, which is quite a high amount; e.g. People are not aware of the real costs of providing water and sanitation services because these have been historically heavily subsidised from governments. If the service is delegated to a private company, the price is set by the municipality after negotiation of a medium or long-term contract between the two parties, setting out the operating conditions and service monitoring terms and determining the price variation terms for the entire period. By way of comparison, note that in France, the average amount of water bills (including sanitation), which vary from one region to the next, is equivalent to 0.7 % of the average net income of households and that it is below 2% in most developed countries. This variation depends to a minor extent on the public, private, mixed or community nature of the service, but mainly on the conditions involved in providing the resource (water collection, quality, distance, cost and age of the facilities, etc.) Water tariffs are a powerful management tool to achieve various objectives in the water and sanitation sector. Get the latest updates on trainings, new articles or perspectives related to SSWM delivered directly to your inbox! Consumption occurs when water is lost into the atmosphere through evaporation or incorporated into a product or plant (such as a corn stalk) and is no longer available for reuse. However, its collection, treatment and distribution, as well as the treatment of wastewater before it is returned to nature, require more or less significant technical, financial and human resources which are sometimes complex and have a cost which needs to be paid for one way or another. The paper introduces the basic economic notions relevant to the water sector; presents an analytical framework for assessing the need for and evaluating subsidies; and discusses the recent evidence on the features and performance of water tariffs and subsidies in various regions, with a special focus on Africa. This paper aims to present a basic conceptual framework for understanding the main practical issues and challenges relating to tariffs and subsidies in the water sector in developing countries. Unusual example in Safatan : to reduce charges, the Management Committee decided to charge 200 CFA francs, i.e. Many poor would be willing and able to pay for appropriate low-cost services, if they were shown to be convenient and reliable (CARDONE & FONSECA 2004). How is it invoiced and collected (...), 6) The notion of affordable water tariffs, 7) Specific difficulties and precautions to be taken, Exemple of realizations done using this sheet'. Domestic charges face large price differentials between consumption blocks (the highest rate is five times the lowest one). It researches international practices in the UK, Australia and the Philippines and several cases in India. cubic meters) of water consumed and remains constant for a certain quantity of consumption (first block). The price of water can thus range from a few cents to €5 per cubic metre, or even more in rare cases. At the same time, water and sanitation are also economic goods. Problems related to increasing block tariff structure are discussed below by means of the example of La Paz, as this well represents typical progressive structures used in many developing countries.

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