Water pricing experiences : an international perspective
Dinar, Ariel | Subramanian, Ashok [editors]
This report presents water pricing experiences across 22 countries in various sectors and over time. Country case studies provide a perspective of recent and future water pricing and water management issues. These studies show that countries have different reasons for charging for water, including cost recovery, redistribution of income, improvement of water allocation, and water conservation. Most countries are now gradually turning over management responsibilities of water supplies to private enterprises and nongovernmental organizations. Some countries are developing legal frameworks to decentralize water management, and encouraging the private sector to become involved through incentives. Still their water supply authorities have the power to set and adjust water rates. A large majority are implementing price schemes to recover operation and maintenance costs from users, and some are also recovering at least a portion of capital costs. Almost all country reports discuss the need for volumetric pricing, metering, moving away from uniform tariffs, and abolishing minimum prices. Many specify the need to significantly increase water charges to all users. The report identifies the development of formal transferable water rights and water markets as crucial issues to consider for managing water resources in the future. The report also recognizes the need to provide incentives to water suppliers and consumers, and the use of measures to protect the environment, such as pollution taxes. Other price-related issues are mentioned such as pricing for irrigation water of different quality, adjusting charges to reflect regional differences in water supply costs, and charging the end-user for safer drinking water by including treatment costs in the water tariff.
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