A Model for Constrained Peak-Load Water and Wastewater Pricing and Capacity Planning

Abstract

This article contains an application of peak-load pricing rules to public water services. The model presents a standard water distribution system and a separate wastewater collection and treatment system. Technical and financial constraints are considered. The optimization process provides peak-load prices for drinking water and sewerage services. These prices reflect efficiently the costs of systems constraints and the real value of water resources scarcity. They provide important guidance in the design of efficient water rates and in the development of different water utilities planning strategies. New technologies in water metering (telemetry) should permit applying this model.

An Incentive Water Pricing Policy for Sustainable Water Use

“…Today, water utilities have different objectives (Elnaboulsi 1999;Rogers et al 2002). First, they might want the most optimal resource allocation.…”

“…Water supply involves the extraction of water from reservoirs, rivers or aquifers, its treatment in various ways, and its distribution under pressure to consumers through networks of mains (Armstrong et al 1994;Elnaboulsi 1999). Raw water is extracted from underground (aquifer) and/or surface sources (rivers, lakes, or reservoirs).…”

“…The recommended pricing system involves a two-part tariff: an access tariff covering fixed costs of service (consumer's hook-up) and a linear charge based on usage, which can be increasing or decreasing with the quantity of water consumed(Elnaboulsi 1999). In other countries that use a two-part tariff, such as Italy, Greece, Finland or Belgium, a social component is included into their increasing block tariffs.…”

An Efficient Pollution Control Instrument: The Case of Urban Wastewater Pollution

“…8 Transition periods must not exceeds 2015 and in one case, Romania, smaller agglomerations have to comply by 2019. projects, etc. Moreover, member states are asked to take account of the principle of full recovery of costs (operational, capital, and environmental/resource) of water services, 9 apply economic concepts such as the polluter-pays principle, adopt approaches and tools based on cost-effectiveness analysis, and consider economic instruments such as incentive water pricing. 10 Social, environmental, and economic considerations as well as climatic and geographical differences are to be taken into account in setting water and wastewater charges.…”

“…In spite of these efforts and directives, putting sustainability into practice has proven to be anything but simple or straightforward! Today, public authorities are having difficulties reforming pricing rules in the water sector and thus controlling urban water pollution [9,17]. Governments adopt more shortsighted programs by using more politically correct tools to fight against the increasing demand of water resources and pollution issues.…”