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Pricing Water Resources and Water and Sanitation Services

Pricing Water Resources and Water and Sanitation Services

(2010)

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Book Details

Abstract

Part of OECD Water Policy and Finance Set - Buy all four reports and save over 30% on buying separately! 
In both OECD and non-OECD countries the water sector is facing the challenges of increased competition for water resources, deteriorating water quality, and the effects of climate change and poor management. In this context, how can countries ensure access to adequate, sustainable and affordable water and sanitation services for all? Pricing water-related services is an essential part of the answer. 
This report compiles reliable and comparable data on pricing water and on water supply and sanitation services across OECD countries. It sheds additional light on such policy issues as the choice of tariff structures for water services, cost recovery for water services and affordability. 
Further reading: Sustainable Management of Water Resources in Agriculture (2010); Managing Water for All (2009); Private Sector Participation in Water Infrastructure: OECD Checklist for Public Action (2009); Social Issues in the Provision and Pricing of Water Services (2003);The Price of Water: Trends in OECD Countries (1999)   
Visit http://www.iwawaterwiki.org/xwiki/bin/view/Articles/UsefulResourcesforDevelopingCountries_0 to access the OECD area on the IWA WaterWiki

Table of Contents

Section Title Page Action Price
Cover\r Cover
Table of Contents 4
Acronyms 7
Executive summary 9
Objective and scope of the report 9
A new context for water pricing 9
Water pricing in OECD countries 10
Consequences for selected policy issues 12
Introduction 15
References 16
Chapter 1:\rWhy water pricing is an issue 17
Water prices: allocation mechanisms vs. revenue-raising instruments 18
Pricing as one financing instrument for the water sector 19
The multiple elements of water-related costs 19
Financing the water sector: sustainable cost recovery, revenues and repayable finance 21
A policy dilemma: trade-offs between multiple objectives 24
Financial sustainability vs. economic efficiency 26
Affordability: financial sustainability of water operators vs. social considerations 27
From water pricing to tariffs 28
Policy issues 30
Notes 30
References 31
Chapter 2:\rWater pricing in OECD countries: state of play 33
A note on method 34
Pricing water resource management 35
Abstraction charges in OECD countries 36
Pollution charges in OECD countries 39
Pricing water supply and sanitation for households 44
Tariff levels for water supply and sanitation 44
Tariff structures for water supply in OECD countries 51
Tariff structures for sanitation in OECD countries 54
Pricing water supply and sanitation for industrial users 54
Connection charges for households and industrial users 59
A synthesis 59
Notes 61
References 61
Chapter 3:\rPolicy challenges related to water pricing 63
A new context for water pricing 64
The water resource management challenge 64
The water and sanitation challenge 67
OECD countries 67
Developing countries 68
Ecological sustainability 69
Economic efficiency: a rationale for second-best solutions 69
Financial sustainability: cost recovery for water supply and sanitation services 70
Affordability of water bills: reconciling different policy objectives 73
Way forward 78
Update the data regularly 78
Address data and knowledge gaps 78
Develop a checklist for policy makers 79
Notes 79
References 80
Annex A. Taxes and levies in household water bills 83
Notes 96
Annex B. Additional sources of information per country 97
Australia 97
Austria 97
Belgium 97
Canada 97
Czech Republic 98
Denmark 98
Finland 98
France 98
Germany 98
Greece 99
Italy 99
Korea 99
Luxembourg 99
Mexico 100
New Zealand 100
Netherlands 100
Norway 101
Poland 101
Sweden 101
United Kingdom 103