Analysing the Diversity of Water Pricing Structures: The Case of France

Abstract

This paper presents the results of a 2003 national survey of urban water pricing structure implemented by 429 district level water utilities. After providing some background elements on the diversity of existing water pricing structures, the paper shows how each structure can be used to achieve different management objectives (water allocation efficiency, costs recovery, and equity). It then describes the structures adopted by French water utilities, showing that flat rate are rarely adopted; declining blocks frequently used; and increasing blocks pricing which should be used to promote water use efficiency remain extremely rare. A statistical clustering is then conducted and a typology of situations elaborated. The paper concludes with highlighting that current pricing structures are influenced by past practices and that the dominant objective of water utilities is to cover costs

Simulating the Impact of Pricing Policies on Residential Water Demand: A Southern France Case Study

“…The survey of existing water pricing practices was implemented by using a survey methodology developed by (Montginoul 2007). A detailed questionnaire was mailed to all the Public Water Utilities, to collect information on water abstraction and sales, and water-pricing structure (e.g., flat rate, volumetric pricing, increasing block).…”

“…French Utilities currently use IBT or ST -or when they do so, do not vary marginal price significantly (Montginoul 2007). There is thus an obvious need for simulation tools that can be used to assess the impacts of various rate structures and levels on water demand, revenues, and certain equity indicators.…”

Environmental Water Price Based on Water Environment Capacity and Ecological Water Consumption: A Case Study of Hefei

“…For a long time, in the development and utilization of water resources human beings only pay attention to the needs of production and living water, while lack awareness of the mutual dependency relation between the protection of water resources and the ecological environment, and ignore the ecological water, resulting a series of ecological environment problems. Over exploitation of water resources cause the atrophy of rivers, lakes and wetlands, river blanking, wildlife habitat destruction, loss of biodiversity, river siltation, reduced self purification capacity of water [25]. And the deterioration of water environment has been an increasingly serious ecological and environmental problems.…”

Water pricing in Ireland: a techno-economic and political assessment

“…It is generally agreed that two-part pricing structures are the way forward in modern water policy and are the most effective tools for achieving a compromise in pricing objectives, in spite of the disagreement about how the fixed and volumetric portions of a two-part charge should be approached [3][4][5]32,33]. The most important pricing objectives in Ireland's pricing policy should be cost recovery, efficiency and equity.…”