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.
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Why water pricing is an issue
This chapter clarifies the multiple roles of water pricing and situates pricing among other financing mechanisms for water-related services. It identifies two policy questions which will organise the analyses in the report: What proportion of the costs of water-related services is recovered by revenues from tariffs? Are tariff structures adequate and accompanied by social mechanisms?
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