Cost Recovery For Water Services Research Articles

Full cost recovery of water services and the 3 T's of OECD

In Europe today, tariff design is no simple matter; consumption decline highlights that ‘optimal’ tariff doesn't exist. The OECD 3 T's cost recovery approach allows to discuss solutions to implementing the triple bottom line of sustainability in the water services sector, through new governance mechanisms. For both internal and external governance, additional knowledge can help adapt tariff design. And the recovery of environmental and resource costs paid by authorities in charge of water services could be passed on citizens (local taxes) rather than customers (water bills). In France, the liberal state tradition makes it impossible, leading to incoherent tariffs.

Opłaty za usługi wodne w rolnictwie w świetle polskiego prawa i wymagań Unii Europejskiej

Użytkowników wody można podzielić na trzy podstawowe grupy: gospodarstwa domowe, przemysł i rolnictwo. Rolnictwo wykorzystuje zwykle nieoczyszczoną wodę pobraną bezpośrednio ze źródła do nawadniania pól uprawnych. Wraz z pojawieniem się uregulowań prawnych dotyczących usług wodnych wprowadzono zasadę zwrotu ich kosztów, która dotyczy wszystkich użytkowników. Rolnictwo w zakresie poboru wody powierzchniowej do nawadniania do 2018 roku nie ponosiło żadnych opłat. Celem opracowania jest przedstawienie systemu opłat za pobór wody do celów rolniczych w Polsce w nawiązaniu do wymogów Unii Europejskiej oraz zasady zwrotu kosztów za usługi wodne.

The eu Water Framework Directive – Challenges, Gaps and Potential for the Future

This article assesses the progress of the European Union’s Water Framework Directive from a legal and policy perspective. Emerging judgments from the Court of Justice of the European Union are providing new clarity, for example on cost recovery for water services and the application of the ‘no deterioration’ principle. The article reflects on transposition, especially in the uk; analyses several aspects that have been especially challenging, for policy-makers, regulators and water users; and identifies some missing elements. Challenges include the meaning of ‘good status’ and the derogations to achieving the same; the article will suggest that the derogations are needlessly complex, and that ‘good status’ as a binding obligation has had unintended consequences. Absent from the text currently is provision for drought, climate change and ecosystem services, and it concludes that each of these could usefully be part of the Commission’s review in 2019.

The Environmental Costs of Water Flow Regulation: an Innovative Approach Based on the \u2018Polluter Pays\u2019 Principle

The EU Water Framework Directive (WFD) explicitly requires the full cost recovery of water services, including the environmental costs incurred from the damage that water uses inflict on the environment. Although flow regulation by river damming is one of the most prominent human impact on fresh water ecosystems its environmental costs are not properly included in water pricing. This paper presents a novel approach to assessing the environmental costs of flow regulation based on the polluter-pays principle. The methodology includes three steps: (i) assessing the admissible range of regulated flow variability, derived from the natural flow regime variability, (ii) estimating the daily environmental impact of regulated flows according to deviations from the admissible range of flow variability, and (iii) calculating the environmental costs of flow regulation. The procedure is applied to four river case studies in Spain, UK and Norway. The advantages over other water cost valuation methods are discussed. The methodology enlarges the current recognition of environmental costs of water use and represents a practical management tool within the WFD context, encouraging transparency and stakeholder communication.

Assessing the impact of full cost recovery of water services on European households

Abstract We assess the impact of implementing the full cost recovery (FCR) principle for water services on European households. This assessment includes three dimensions. First, we measure how household water consumption reacts to the price change induced by implementing the FCR principle. Second, we provide a measure of the resulting household welfare losses. Third, we evaluate how household water affordability is impacted. This assessment which relies on a household water demand function approach has been conducted for 9 European countries (Austria, Bulgaria, Czech Republic, Estonia, France, Greece, Italy, Portugal and Spain). For most of these countries, we show that implementing the FCR principle does not lead to substantial water affordability issues. Bulgaria (and to a lesser extend Estonia and France) is one exception since poor households (i.e. households belonging to the first income decile) have to devote more than 3% of their income for paying their water and wastewater bill under a FCR regime. The fact that water affordability may become an issue under FCR for some countries gives some ground for public authorities to develop specific policies targeted to poor households.

The Effectiveness of the Principle of Recovery of the Costs of Water Services Jeopardized by the European Court of Justice – Annotations on the Judgment in C-525/12

In Case C-525/12 the European Court of Justice concludes that cost recovery for water services as outlined in Article 9 of the Water Framework Directive is only one of the instruments for Member States to strive for a rational water use. It furthermore concludes that the wfd environmental objectives not necessarily imply that cost recovery should be applicable to all water-related activities mentioned in Article 2 (38) wfd. In this underlying contribution a number of critical remarks to this judgment are provided. In view of the authors, the European Court of Justice reduces the effectivity of the cost recovery principle too rigorously by reducing the principle of cost recovery for water services to a practically voluntary tool for Member States.

Ecj on Cost Recovery for Water Services under Article 9 of the Water Framework Directive: Camera Locuta Causa non Finita

ecj on Cost Recovery for Water Services under Article 9 of the Water Framework Directive: Camera Locuta Causa non Finita

Cost Recovery for Water Services in the EU

The EU Water Framework Directive stipulates the principle of cost recovery, including environmental and resource costs, for European water services. Yet a definition of member states’ precise obligations is highly controversial. This particularly holds true for the question whether the request for cost recovery can be restricted to water supply and wastewater disposal only, as many member states argue. The European Court of Justice has now decided on the Commission’s infringement proceedings against Germany regarding the scope of the term “water services”. In its eagerly awaited substantive decision, the Court dismissed the Commission’s action as unfounded but left the door open for further claims. However, many legal arguments in favour of a strict interpretation of cost recovery are not only misleading but also pass up valuable opportunities to deal with scarce water resources in an efficient way.

The Polluter Pays Principle: Guidelines for Cost Recovery and Burden Sharing in the Case Law of the European Court of Justice

Over the years, the polluter pays principle has developed into a strong basis for EU policy making. Many European Directives refer to this principle, for instance as a basis for cost recovery or liability. The European Court of Justice has contributed significantly to the development of the polluter pays principle. Case law of the European Court of Justice on the polluter pays principle provides guidelines for burden sharing and recovery of costs. In this article we will illustrate how these guidelines may be helpful to solve current environmental issues. We will argue that the guidelines of the polluter pays principle apply to the establishment of coherent programmes of measures, as required under the Air Quality Directive and Water Framework Directive. We will also discuss the influence of the polluter pays principle on the cost recovery for water services under Article 9 of the Water Framework Directive.

Pricing Water Resources and Water and Sanitation Services

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.This title belongs to OECD Report Series.ISBN: 9781780406060 (eBook)ISBN: 9781843393665 (Print)

Scenario-based strategy development for integrated water management

This paper presents a step-by-step methodological approach for the development and evaluation of strategies for water deficient regions. The primary focus of the approach followed was the mitigation of water stress, while applying the principles of Integrated Water Resources Management and the EU Water Framework Directive. The participation of Stakeholders and end-users through consultations was a key point in the methodology followed. Stakeholders and actors were approached and their opinions on Water Management were collected and integrated into a list of measures and instruments suited and available for implementation, forming the basic assumptions governing the strategy formulation process for a region. Comprehensive scenarios were developed and examined for each of the selected options, through a prototype Decision Support System (WSM DSS), in order to obtain an initial ranking with regard to their suitability and performance. Then, the strategy formulation involved the integration of options on a regional basis in a set timeframe, based on their previous estimated performance and technical considerations with regard to their implementation. To achieve the set-out goals and principles two distinct strategies were evaluated and compared, one reflecting the traditional and current practices and policies, and one closely following the principles of Integrated Water Resources Management (IWRM). The developed Strategies were evaluated against each other and against the reference state of the water system, using a set of appropriate indicators for performance, cost, environmental and social impacts. Alternative pricing schemes were also explored in order to achieve a desired level of cost recovery for water services, and determine its effect on Strategy implementation. The developed strategies were re-examined and adjusted on the basis of the cost recovery structures, to account for the effects of price elasticities, and an overall evaluation was obtained enabling a final comparison. The methodology is illustrated through an exemplary application for the island of Paros, Greece. On the basis of the perceptions of different stakeholders, alternative water management strategies were developed and evaluated, and recommendations were made towards the mitigation of impacts caused by the high temporal water imbalance in the island.

Valuation and pricing of irrigation water: an analysis in greek agricultural areas

Greece is a typical Southern European country in which the agricultural sector is the major consumer of water, a fact that has potential impacts on the water resources efficient allocation and management. The record-high percentage of the agricultural water use at the national level, together with a fairly loose system of water management, point out that there is a certain need for reform in related policies, including the pricing system for the provision of water services to agriculture uses. The paper presents current information and figures regarding the overall situation of irrigated agriculture in Greece and its relation to water management issues. It also illustrates a number of case studies pertinent to this sectoral water economy. A common element in all these studies is the application of appropriate methodologies that aim at valuating water for irrigation and assessing current and potential future systems of agricultural water pricing. In face of the prospect of Greece conforming to the European Water Framework Directive, the presented applications add to the ongoing debate on the applicability of the principle of full cost recovery of water services in European countries.

Recovering the Costs of Water Services in the People’s Republic of China: Lessons from Article 9 of the European Union Water Framework Directive

The cost recovery of water services is becoming known as an important element for water management internationally. The Water Framework Directive is a leading document in implementing these economic instruments in the European Union and it is also a good framework to refer to when the People's Republic of China reforms its water price policies and its recovery of the costs of water services. By providing a comparative study of the backgrounds and contents of costs recovery between Article 9 of the Water Framework Directive and the water management-related systems in the People's Republic of China, this article aims to look for some legal solutions in the European framework that can be useful for the water management of the People's Republic of China.

Cost recovery for water services and the polluter pays principle

This paper considers the general rationale for cost recovery pricing in respect of water services and examines the specific provision that is made for this, and related obligations, in Article 9 of the European Community Water Framework Directive. Despite guidance drawn from the Common Implementation Strategy, uncertainties remain, particularly with regard to the need to recover environmental and resource costs and how account should be taken of the polluter pays principle. Given the intractable character of these difficulties, it is suggested that the some of the practical outcomes and environmental benefits of implementation are speculative.

Water pricing and full cost recovery of water services: economic incentive or instrument of public finance?

Neoclassical economists have advocated the use of pricing instruments as a fundamental tool for achieving sustainability of water systems and an efficient allocation of water resources. This idea has been accepted in worldwide agreed definitions of sustainability, where “full-cost recovery” is considered as a basic requirement. In this paper, we argue that water pricing (aiming at allocative objectives) and cost recovery can often be at odds, while prevalence of one or the other objective also depends on whether the main issue at stake is financing infrastructure development and maintenance, or rather allocating scarce water resources. Therefore, the two issues should be dealt with separately and require different approaches to pricing.

Mapping public participation in the Water Framework Directive: A case study of the Pinios River Basin, Greece

The EU Water Framework Directive requires the involvement and participation of stakeholders and the public, and considers full cost recovery for water services for enhancing the sustainability of water resource management. The Directive is non prescriptive as to how public participation should be operationalised in practice, and Member States appear to be adopting different participatory practices. This study explores the issue of public participation in the context of the Pinios River Basin in Greece, a pilot area for the WFD implementation. The study uses Fuzzy Cognitive Mapping, a form of qualitative modeling linked to stakeholders' perceptions. Fuzzy Cognitive Mapping has been used to elicit stakeholder and public perceptions on the current state and pressures on water resources and the acceptability of applying economic principles in water resource management. Based on these perceptions, different water management policy options have been simulated in order to explore their potential effects on the water resources and the economy of the area. The study outlines public and stakeholder perceptions on the application of full cost recovery for water services and offers a perspective on the potential contribution of Fuzzy Cognitive Mapping in participatory river basin management.

The Principle of Full Cost Recovery in the EU-Water Framework Directive--Genesis and Content

The integration of economic aspects in river basin management has been a feature of the European Water Framework Directive 1 from its initial drafts. Its most important reference is in Article 9 that introduces the principle of cost recovery 2 for water services 3 in accordance with the polluter pays principle. Cost recovery is achieved through the prices that the water service consumers have to pay to the provider directly and through any tax, charge or levy that is imposed on the service, and is borne by the consumer directly or indirectly. Full cost recovery pricing of water services according to the ‘polluter pays principle’ fulfils three basic economic functions: informational, steering and financing. Ideally, the price of a good reflects all financial and supplementary costs incurred by the production of that good. A full cost recovery for water services in accordance with the polluter pays principle has the...

Cost Recovery for Water Services According to the EU Water Framework Directive (Verursachergerechte Kostendeckung FüR Wasserdienstleistungen - Die Anforderungen Des Art. 9 Wrrl Und Ihre Umsetzung)

The requirement of full cost recovery for water services including environmental and resource costs in accordance with the polluter pays principle in Art. 9 EU-Water Framework Directive is a unique provision in the history of the European environmental law. The wording of the provision is a compromise between the Council's and the Parliament's versions that mirrors different conceptual ideas on how to internalize environmental and resource costs. Art. 9 now contains a two step concept for the achievement of the aim. The uniform implementation of the full cost recovery calls for common accounting standards for the calculation of financial cost and a common methodology for the estimation of environmental and resource costs on the European level. In Germany the requirements of the first step are partly fulfilled, but necessities of the second step are not being met at the moment.

Une eau qui déborde les modèles économiques ? Faisons flotter quelques malentendus

The debate on sustainable water management, and on its recognition as an economic good and a market good is becoming global, but within a certain confusion. It is not only due to mixing up water as a resource and water markets on the one hand, and water as a public service and its privatisation on the other hand. This paper tries to show that economists themselves disagree as to how consider efficient management of renewable natural resources, and also as to the evaluation of the efficient and fair price for water services provision. The review of these various trends is followed by afterthoughts on the evaluation report of the French Agences de l'eau by the Commissariat au Plan. Lastly, the presentation of the concept of full cost recovery of water services is illustrated by two contrasted examples on Barcelona and Los Angeles, which help understand what demand side management brings to the issue.

Sources of successful cost recovery for water: Evidence from a national survey of South African municipalities

This article analyses variation in municipal cost recovery for water services in South Africa. It uses original data from a national survey of municipalities, conducted in late 2000. A multivariate causal model is estimated to measure the effects of social and institutional context, service infrastructure, and billing and payment practices. The analysis shows that cost-recovery outcomes vary widely and are quite sensitive to factors that can be influenced by municipal decision-makers. Substantive implications for a typical South African municipality are clarified through simulations of the effects of upgrading infrastructure, introducing various cost-recovery measures, and extending basic services to poor households. As profound changes in the institutional and policy environment--including municipal restructuring (demarcation) and the 'free basic water' policy--force municipalities to review their cost-recovery strategies, the article offers insights into how to achieve the best possible outcomes.