The Connection Between Water Prices and Water Network Efficiency
Is there a relationship between water loss rates and water tariffs?
Water loss, estimated at 25-30% globally, together with the infrastructure deficit of water networks, is a huge problem: it requires more water production, wastes energy and makes water networks vulnerable.
But water pricing is by nature a political issue: agriculture, industry and residential consumers all resist water prices that reflect the real cost of water.
TaKaDu's current research takes this question head-on: are low water tariffs associated with higher water loss?. The results, based on 41 urban networks worldwide, show that high water loss rates (as indicated by Non-Revenue Water rates) are associated with low water pricing. These findings underscore an ongoing political and economic debate concerning water pricing, the role of regulators, the politics of water and the possibility of water services privatization. They also raise questions regarding the role governments and policy-makers should play in order to break the vicious cycle of under-investment in water networks.
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