Attitudinal and socio-demographic effects on willingness to pay for water services and actual payment behaviour

Improving revenue collection rates and minimising the levels of ‘bad debts’ is currently a top priority for managers of water utilities in low-income countries. This study used empirical data from a cross-sectional survey of 505 utility customers in eight urban centres in Uganda to show that customer attitude towards prompt payment, perceived ease or difficulty of paying on time (perceived control), as well as social pressure, strongly influence intentions to pay, which in turn directly affects actual prompt bill payment behaviour. The findings also show that gender, income, occupation of the household head and tenure status have statistically significant direct relationships with intentions, but their effects are much smaller compared to the joint influence of attitudes, perceived control and perceived social pressure. Moreover, the effects of gender and occupation are completely mediated by perceived control and social pressure respectively. These results have implications for improving revenue collection through customer-focused initiatives

Maximizing the ‘value’ of improved water services in small towns

This paper examines the value concept drawing on literature from consumer behaviour and services marketing disciplines. The relevance of the concept to water services management, particularly in small towns is highlighted. Consistent with other services or goods, the authors contend that value perceptions play a crucial role in consumer decision-making as regards improved water service use. To influence consumer decisions to utilise improved water services such as piped water, and the willingness to sustain the services, service providers should put more emphasis on maximising consumer perceived value of the service offering. The authors propose a wide range of value maximisation strategies. It is also suggested that water sector practitioners and researchers pay more attention to consumer behaviour studies so as to promote a consumer-centred approach to water service delivery

Why customers don't pay their water bills promptly: evidence from small urban water utilities in Uganda

This paper examines the motivations of water utility customers when it comes to paying their water bills promptly. Through an exploratory study of five small urban water utilities in Uganda, we find evidence of a positive attitude towards regular and prompt paying of water bills among utility customers. However, what motivates a customer to settle an outstanding water bill seems to relate mainly to the overall quality of the service provided by the utility. Contrary to the usual explanation that low-incomes typical of small urban centers are responsible for low cost-recovery in those areas, we found evidence that supports the view that poor service quality (i.e. unreliable supply, poor customer relations, poor billing and collection systems, etc) is a key consideration for customer decision-making when it comes to paying water bills regularly and promptly. Implications for small urban water utilities and their regulators in Uganda and elsewhere are discussed

Improving water utility management and performance in developing countries

Public urban water utilities in developing countries share enormous challenges in meeting the water needs of their growing urban populations as a result of poor utility management practice. This article summarizes the results of a project initiated by the African Water Utility Partnership (WUP), supported by the Swedish International Development Agency (Sida) which has pioneered a successful partnership between Severn Trent Water International, the Water, Engineering and Development Centre (WEDC) and six African water utilities. Important policy lessons emerged from this innovative partnership approach to utility management improvement and opportunities were identified for scaling up these approaches to other utilities

Partnerships for improving water utility management in Africa

Urban water utilities in developing countries face enormous challenges in meeting the water needs of growing urban populations. Many of the challenges stem from poor utility management practices and the lack of a commercially oriented culture. For many years the debate on how to address this problem has been dominated by two extremes. On the one hand, private sector participation (PSP) has had only limited success. On the other, public management reform, which urges the creation of incentives for public utilities to become more efficient and commercially oriented, has not yet taken hold due to the slow pace of institutional reforms in developing countries. Given this situation, major players in the sector are seeking alternative approaches to improving utility management and performance in developing countries. Such alternative approaches include innovative multi-sector partnerships between private, public and civil society. This paper discusses a partnering approach (pioneered by the Water Utility Partnership (WUP) of Africa) between Loughborough University, Severn Trent Water, six African water utilities and utility management consultants. The aim of the partnership is to increase the management capacity of utility companies in order to improve the performance of water utilities in Africa. This innovative model has implications for policy and practice in this field

Evaluating the institutional sustainability of an urban water utility: a conceptual framework and research directions

Institutional sustainability (IS) is critical to translating infrastructure investments into actual service delivery. This paper examines IS for urban water utilities, and how its progress could be tracked. Common conceptualisations of IS in extant literature were found inadequate from an evaluation stand point. We conceptualize IS as a capacity rather than a financial issue, and, consistent with a process-based approach, we propose a new evaluation tool e the water utility maturity (WUM) model e which is flexible and considers different levels of IS. The WUM model, which requires further validation/verification, was piloted in two water utilities in South Asia with positive feedback

Why water utility customers don't pay their bills promptly

This paper examines the motivations of water utility customers when it comes to paying their water bills promptly. Through an exploratory study of five small urban water utilities in Uganda, we find evidence of a positive attitude towards regular and prompt paying of water bills among utility customers. However, what motivates a customer to settle an outstanding water bill seems to relate mainly to the overall quality of the service provided by the utility. Contrary to the usual explanation that low-incomes typical of small urban centers are responsible for low cost-recovery in those areas, we found evidence that supports the view that poor service quality (i.e. unreliable supply, poor customer relations, poor billing and collection systems, etc) is a key consideration for customer decision-making when it comes to paying water bills regularly and promptly. Implications for urban water utilities and their regulators in Uganda and elsewhere are discussed

Can ISO 9001 certification of water utilities in developing countries be used to evaluate institutional sustainability?

Provision of reliable water services is critical for sustainable development. Next year (2015), the United Nations will review achievement of the Millennium Development Goals (MDGs). Based on previous trends, The WHO/UNICEF Joint Monitoring Programme estimates that about 700 million people will not have access to safe drinking water in 2015. During the post- 2015 era, urban water utilities in less developed regions of the world will face greater challenges in extending and sustainably providing water services, where, it is projected, the urban population will increase from 2.57 billion in 2010, to 3.95 billion in 2030 (UN-Habitat, 2010). Consistent with various scholars, we argue in this paper that there can be no sustainable development in any sector without the support of effective and sustainable institutions. Whereas indicators for measuring improved quality of service are established in policy and practice, there has been no agreement between policy makers, practitioners and academicians on how best to measure institutional sustainability for improved organisational performance. An increasing number of urban water utilities in developing countries are adopting quality management systems (QMS) based on ISO 9000 series of standards in order to improve their performance. This paper reports on the results of a study commissioned by the World Bank to assess whether ISO 9001 QMS offer a sound framework for evaluating institutional sustainability of urban water utilities. The study was conducted in 2011/12 through a comprehensive literature review and primary data collection from two case study urban water utilities in sub-Saharan Africa. Primary data were collected through semi-structured interviews and questionnaires with senior and middle-level managers; Focus Group Discussions (FGDs) with lower cadre staff of the utilities; and analysis of Key Performance Indicators (KPIs) before and after ISO certification. Evidence from the literature showed that there is a plausible link between ISO 9000 QMS standards and institutional sustainability. Field data from the two African water utilities corroborated the findings from the literature. However, findings from the case studies indicate that there is no causal link between ISO 9001 certification and institutional sustainability. The study shows that the purpose and motivation for implementing ISO 9001 QMS are important moderating factors. Furthermore, ISO 9001 framework does not adequately cater for many factors in the external environment of the service providers, which are critical for institutional sustainability. There is need, therefore, to develop a more effective assessment tool for tracking a water utility’s progress towards institutional sustainability

Can ISO 9001 certification of water utilities in developing countries be used to evaluate institutional sustainability?

Provision of reliable water services is critical for sustainable development. Next year (2015), the United Nations will review achievement of the Millennium Development Goals (MDGs). Based on previous trends, The WHO/UNICEF Joint Monitoring Programme estimates that about 700 million people will not have access to safe drinking water in 2015. During the post-2015 era, urban water utilities in less developed regions of the world will face greater challenges in extending and sustainably providing water services, where, it is projected, the urban population will increase from 2.57 billion in 2010, to 3.95 billion in 2030 (UN-Habitat, 2010). Consistent with various scholars, we argue in this paper that there can be no sustainable development in any sector without the support of effective and sustainable institutions. [Continues.

WUM model: emerging tool for evaluating institutional capacity of urban water utilities

Urban water utilities in the world’s developing regions are faced with challenges of scaling up services to cope with the rapid rate of urbanisation, and sustaining the service delivery. Increasingly, it is being recognised in development management that institutional capacity is a precursor for sustainable service delivery. This paper discusses the findings of a recent study funded by the World Bank, which, using case studies in Asia, examined the various conceptualisations of institutional sustainability, institutional capacity and capacity development, in the context of urban water services. Consistent with a process-based approach, and adapting concepts from organisational maturity models, the authors propose a new evaluation tool – the Water Utility Maturity (WUM) model. The outline WUM model was piloted with utilities in South Asia, and was found to be promising. The WUM model is flexible and considers different levels of institutional sustainability