Tap water costs and service sustainability, a close relationship

Water is currently an essential and strategic resource for society and its importance will rise in the future due to the increasing number of threats. However, water management is not currently up to par taking into consideration this well acknowledged importance. Generally speaking, water use is not efficient and loss figures are often too high. The reasons behind this situation are complex and diverse, however, in principle, they can be divided into four categories: cultural, political, social and economic. Since the latter are of most importance, this paper focuses on water costs from source to tap. The economic analysis presented quantifies the costs of a sustainable urban water service in a structured way. The second part of the paper present a case study in which the economic losses linked to leakage are assessed as a function of how expenses are recovered. The cost of apparent losses could also be assessed in a similar way and will always be higher, since apparent losses (unlike real ones) are present throughout the whole water cycle, thus increasing the unit costs.Cabrera Marcet, E.; Pardo Picazo, MA.; Cabrera Rochera, E.; Arregui De La Cruz, F. (2013). Tap water costs and service sustainability, a close relationship. Water Resources Management. 27(1):239-253. doi:10.1007/s11269-012-0181-3S239253271Almandoz J, Cabrera E, Arregui F, Cabrera Jr E, Cobacho R (2005) Leakage assessment through water networks simulation. J Water Resour Plan Manag ASCE. Nov-Dic. 2005 pp 458–466BDEW (German Association of Energy and Water Industries) (2010) Comparison of European Water and Wastewater Prices German Association of Energy and Water Industries, BonnCabrera E, Pardo MA, Cobacho R, Arregui FJ, Cabrera Jr E (2010) Energy audit of water networks. J. Water Resour. Plan. Manag. ASCE. Nov–Dic. 2010 pp 669–677Coase RH (1960) The problem of social cost. J Law Econ, October 1960den Blanken M (2009) Asset Management. A necessary tool for a modern water company AWWA International Conference on Strategic Asset Management. Miami 11–13 November 2009EPO (Eurostat Press Office) (2010) Facts and figures on the environment: from environmental taxes to water resources. Eurostat Press Office, Luxembourg, December 2010EU (European Union) (2000) Directive 2000/60/EC of the European Parliament and of the Council of 23 October 2000. Off J Eur Communities 22.12.2000. Pp L 327/1 to L 327/72IWA (International Water Association) (2010) International statistics for water services. Montreal 2010. Canada. International Water Association, LondonKanakoudis V, Tolikas D (2001) The role of leaks and breaks in water networks: technical and economical solutions. J Water SRT - Aqua 50(2001):301–311Kanakoudis V, Tsitsifli S (2009) Water pricing policies in Greece: is there a Common Understanding?. 2nd International conference on water economics, statistics, and finance Alexandroupolis, Thrace, Greece, 3–5 July 2009.Kanakoudis V, Gonelas K, Tolikas D (2011) Basic principles for urban water value assessment and price setting towards its full cost recovery – pinpointing the role of the water losses. J Water Supply: Res Technol 60(1):27–39Logar I, Van den Berg J (2012) Methods to assess costs of drought damages and policies for drought mitigation and adaptation: Review and recommendations. Water Resour Manag. doi: 10.1007/s11269-012-0119-9Molinos-Senante M, Hernández-Sancho F, Sala-Garrido R (2012) Tariffs and cost recovery in water reuse. Water Resour Manag. doi: 10.1007/s11269-012-0111-4NRC (National Research Council) (2008) Desalination a national perspective. NAP Press, Washington, D.C. National Research Council, Ottawa, CanadaOECD (Organisation for Economic Co-operation and Development) (2010) Pricing water resources and water and sanitation services. OECD, ParisOFWAT (Office of Water Services) (2009) Future water and sewerage charges 2010-15: Final determinations. OFWAT (Office of Water Services), Birmingham UKRogers P, Bhatia R, Huber A (1998) Water as a social and economic good: How to put the principle into practice. Global Water Partnership, Swedish International Development Cooperation Agency.Roth A (2001) Water pricing in the EU. A review. European Environmental Bureau (EEB), BrusselsWonnacott P, Wonnacott R (1990) Economics, 4th edn. John Wiley, 1990Zhu X, van Ierland EC (2012) Economic modeling for water quantity and quality management: a welfare program approach. Water Resour Manag. doi: 10.1007/s11269-012-0029-

Report of the views of OFWAT's Northumbria Customer Service Committee on the consultation paper 'Paying for Water - A Time for Decisions'

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Comparing the performance of England and Wales water sewerage companies with Sydney Water, Water Corporation Western Australia (1997-98 data)

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Market competition in the water and sewerage industry

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Having your say A consultation paper on how Ofwat involves stakeholders in the process of making its decisions

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Report on company performance in 1996-97

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The proposed acquisition of Brockhampton Holdings plc by South Downs Limited A consultation paper by Ofwat

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Ofwat forward programme 2001-02 and strategic issues 2002-05

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Water charges and company profits

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Assessing the scope for future improvements in water company efficiency A technical paper

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