AFFORDABILITY OF WATER AFFORDABILITY OF WATER AND SANITATION BILLSAND SANITATION BILLS

HENRI SMETSWater Academy

Istanbul, March 2009Istanbul, March 2009WATER ACADEMY

WATER ACADEMY

FRANCE “Every physical person has the right to access to drinking water for nutrition and hygiene at an affordable price”

(Water Law of 30th December 2006).

WATER ACADEMY

ALGERIA

« Domestic users have the right to the supply at a social tariff

of a volume sufficient to meet vital needs »

(Loi N°05-12 du 4 août 2005 relative à l’eau).

WATER ACADEMY

Affordability index :

ratio of water and sanitation bill to household income

WATER ACADEMY

USUAL AFFORDABILITY INDEX

Median HH Poor HH___________________________

Industrialized 1% 2.5%countries

Developing 2.5% 7.5%countries

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Solidarity measures

HELPING THE POOR.

THREE QUESTIONS :

a) Who benefits? (how poor, widow, etc)

b) Who pays ? (users or taxpayers?)

c) How much help ? (25% of normal bill?)

WATER ACADEMY

SOCIAL MEASURES IN 50 STATES EuropeAmerica Other

___________________________________________

Belgium Argentina South AfricaBulgaria Bolivie AustraliaSpain Brazil Cap VertFrance Chile ChinaGreece Colombia South KoreaHungary Costa Rica GabonItalia United States India Lithuania Guatemala Indonesia

WATER ACADEMY

Europe America Other___________________________________________

Luxembourg Mexico Japan Malta Nicaragua Kenya Netherlands Panama MoroccoPoland Paraguay Mongolia Portugal Peru PakistanUnited Kingdom Saint Kitts SingapourRussia El Salvador Sri LankaTurkey Uruguay Tunisia Ukraine Venezuela

WATER ACADEMY

Solidarity measures

TYPICAL SOCIAL MEASURES TO PROTECT AFFORDABILITY

a) Differentiated tariffb) Water quotasc) Targeted aid

d) Affordability targets

WATER ACADEMY

Countries with affordability targets

Lithuania (2%), Northern Ireland (3%),

Argentina (3%), Venezuela (3%),

Chile (3%), United States (4%),

Indonesia (4%), Kenya (5%),

Mongolia (6%).

WATER ACADEMY

Solidarity measures

TARGETED MEASURES FOR POOR HH: A) Free water quota (Gabon)B) Reduced water prices (Colombia)C) Targeted aid (Chile)D) Aid for debts (France, Belgium)E) Higher prices for enterprises (Tunisia)

WATER ACADEMY

Solidarity measures

GENERAL MEASURES

a) high subsidies and low taxes on waterb) increasing block tariffc) water quota for all /free water

……….COSTLY

WATER ACADEMY

Each country should calculate whether water is affordable for the poor.

First conclusion :CALCULATE WATER AFFORDABILITY

WATER ACADEMY

Second conclusion : TAKE SOCIAL MEASURES

•Most countries should take social measures to facilitate access to water and sanitation for poor people

WATER ACADEMY

Third conclusion :

YES YOU CAN !

•Over 50 countries did it