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Water Affordability Public Operators’ Views and Approaches on Tackling Water Poverty I

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Water Affordability Public Operators’ Views and Approaches on Tackling Water Poverty I WATER AFFORDABILITY PUBLIC OPERATORS’ VIEWS AND APPROACHES ON TACKLING WATER POVERTY I. TABLE OF CONTENTS FOREWORD ......................................................................................................................................... 1 ABOUT AQUA PUBLICA EUROPEA ................................................................................... 2 ACRONYMS ....................................................................................................................................... 3 INTRODUCTION: WHY AFFORDABILITY MATTERS ................................................ 4 SCOPE AND METHODOLOGY OF THE REPORT ...................................................... 6 BELGIUM .............................................................................................................................................. 8 OPERATORS’ APPROACHES TO AFFORDABILITY AQUAWAL ...................................................................................................................................................... 12 AquaFlanders ............................................................................................................................................... 16 HYDROBRU ............................................................................................................................18 FRANCE ...............................................................................................................................................20 OPERATORS’ APPROACHES TO AFFORDABILITY Eaux de Grenoble-Alpes ........................................................................................................................ 25 Eau de Paris ................................................................................................................................................. 26 Syndicat des Eaux et d’Assainissement du Bas-Rhin (SDEA) ..................................................27 Ville de Besançon .................................................................................................................................... 28 GERMANY .........................................................................................................................................29 ITALY .................................................................................................................................................30 OPERATORS’ APPROACHES TO AFFORDABILITY VIVERACQUA ............................................................................................................................................... 34 CAP Holding ................................................................................................................................................ 34 Acquedotto Pugliese ................................................................................................................................ 35 Societa’ Acqua Lodigiana (SAL) .......................................................................................................... 36 Società Metropolitana Acque Torino (SMAT) ..................................................................................37 SCOTLAND ........................................................................................................................................39 OPERATORS’ APPROACHES TO AFFORDABILITY Scottish Government / Scottish Water ............................................................................................. 40 SPAIN ..................................................................................................................................................41 OPERATORS’ APPROACHES TO AFFORDABILITY PROMEDIO Badajoz ................................................................................................................................. 44 SWITZERLAND................................................................................................................................45 CONCLUSIONS .............................................................................................................................. 47 KEY MESSAGES .............................................................................................................................54 REFERENCES .....................................................................................................................................55 II. This page is intentionally left blank. III. FOREWORD By Célia Blauel, President of Aqua Publica Europea and of Eau de Paris; Deputy-Mayor of Paris The vast majority of European households are today connected to safe water and sanitation, and their expenditure for water is on average lower than for other essential services. However, this does not mean that the water bill is affordable for all. It is not always easy to have clear and definitive information on the number of households who face difficulties in paying their water bill: the very same concept of “affordability” presents a series of theoretical complexities and methodological challenges. Yet, even in affluent Western Europe, we note that for an increasing number of people paying the water bill represents a problem, however cheap this bill is. We are persuaded that ensuring that everyone has access to affordable water is, first of all, an ethical imperative. It has also increasingly become an obligation according to international law: as we know, the human right to affordable water has been recognised by the United Nations and represents an essential element of the international Development Agenda adopted last year. All of the above urge us to identify effective instruments to address potential water affordability problems. More precisely, by “effective instruments”, we mean approaches that enable us to treat affordability problems in an efficient, equitable and systematic way (i.e. avoiding case-by-case responses), while ensuring cost- recovery of water services. In fact, cost-recovery and affordability considerations need to be addressed together: economically disadvantaged citizens are those who are likely to suffer more from under-financed and poorly performing water services. The responsibility of adopting the solutions that can reconcile adequate financing, environmental sustainability and affordability, lies primarily in the hands of political representatives. However, other stakeholders—and especially water operators—have crucial responsibilities too. Firstly, water operators must strive to continuously improve their performance, so as to deliver the best quality service at the lowest cost. Aqua Publica members are fully committed to respond to this challenge, as shown by their engagement in international benchmarking exercises. In addition to this, Aqua Publica members, as non-profit organisations, are dedicated to keeping water charges as low as possible, by reinvesting all revenues in the water cycle. But we are persuaded that the responsibilities of publicly-owned operators should stretch even further than their industrial function. As companies that form an intrinsic part of the territory in which they operate, public operators should play a proactive role in society. Concretely, this means that they have to mobilise their intellectual resources, and collaborate with political authorities and other stakeholders in the search for viable solutions to common challenges. It is with this spirit that we have decided to produce this publication, which presents a series of accounts describing concrete solutions to affordability issues. Such solutions may vary substantially depending on the context. However, interestingly, the challenges operators are confronted with are quite similar. This is worth noting, as it highlights the need to extend the discussion on affordability beyond local or national contexts. We hope that this document may represent a small but concrete contribution to this debate. Ensuring that all citizens have access to affordable, high quality and sustainable water services is a complex task that requires the coordination of a plurality of institutions and actors operating on different levels. The members of Aqua Publica Europea are ready to play their part. 1. ABOUT AQUA PUBLICA EUROPEA Aqua Publica Europea (APE) is the European Association of Public Water Operators. It brings together 100% publicly owned water and sanitation services, and their national and regional associations. Our mission is to promote public water-management at both European and international level. Overall, APE members provide water and sanitation services to over 70 million Europeans, covering the rich and varied landscape of our continent—from the North Sea to the Mediterranean, and from capital cities to remote rural areas. • APE is a platform, facilitating knowledge exchange and joint projects among members to improve performance. • APE is a forum for public operators to meet and discuss water policy issues with the objective of contributing to international policy-making in the water sector. • APE is a catalyst, supporting the development of the international water community by promoting a dialogue between public water operators, the business sector, the academic world, and public institutions. 2. ACRONYMS AEEGSI - Autorità per l’Energia Elettrica, il Gas e il Sistema Idrico AEOPAS - Asociación Española de Operadores Públicos de Abastecimiento y Saneamiento APE - Aqua Publica Europea AQP - Aquedotto Pugliese ATO - ambito territoriale opttimale EGA - Ente di Governo d’Ambito FONI - Fondi per nuovi investimenti ISEE
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