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Session 5.B Information needed for water pricing & expenditure on water – Vienna – 22 June 2005 PowerPoint Presentation
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Session 5.B Information needed for water pricing & expenditure on water – Vienna – 22 June 2005 French experience with water prices survey and use - Illustration from the Artois-Picardie river basin Arnaud Courtecuisse Agence de l’Eau Artois-Picardie – France. Content of the presentation.

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slide1

Session 5.B Information needed for water pricing & expenditure on water – Vienna – 22 June 2005

French experience with water prices

survey and use - Illustration from the

Artois-Picardie river basin

Arnaud Courtecuisse

Agence de l’Eau Artois-Picardie – France

slide2

Content of the presentation

  • The objectives of the survey
  • The Artois-Picardie basin’s context
  • Water price survey
  • Assessment of household’s available income
  • Comparison Water bill vis à vis available income
  • Results, limits and discussion
slide3

1. The objectives of the survey

  • from water price to water bill analysis
  • the rising of the awareness about social impact of water bill
  • the context of the WFD’s implementation and its reference to disproportionate costs :
        • comparison of costs and benefits
        • capacity of economic sectors (inc. households) to finance the environmental objectives targeted
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2. The context of the Artois-Picardie Basin

Rivers quality assessment

  • 20 000 Km2
  • 4,7 Millions inhabitants
  • GDP: 98 billions €
    • GPD/inhabitant: 21 107 €
    • GPD/inh France: 25 978 €
  • Unemployment rate: 12,7%
    • France: 9,9 %
  • 96% of drinkable water come from groundwater
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3. Water price survey

  • tariffs for water and sewerage set at municipality level (2 448 for the Artois-Picardie basin)
  • an annual survey is undertaken by the Artois-Picardie Water agency (i.e. collecting the price for water and sewerage for all municipalities for a mean consumption of 120m3 per year and per household)
  • this survey covers (in 2004) 95% of the basin’s population
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3. Water price survey

  • one page questionnaire sent to municipalities, groups of municipalities, private operators every year
  • a feedback to all 2 448 municipalities through 4 pages results (mean water price for the basin, for sub-basin,…)
  • since 2004 survey, the data at municipality level can be found on the Artois-Picardie agency website
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3. Water price survey

Mean Price for one m3

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3. Water price survey

The breakdown of the 3,28 euros

Water Distribution

Sewerage

Environmental Taxes

Other taxes

VAT

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4. Assessment of household’s available income

table 1 : Mean available income per household in all the sub-region of the Artois-Picardie Basin.

Source : INSEE (National Statistics) + CEGMA TOPO

slide13

5. Comparison Water bill vis à vis available income

Mean Water bill (all services)

(price paid for 120m3 in a year)

Mean available income per household

Table 2 : comparison of the mean water invoice with mean available income per household

slide15

5. Comparison at municipality level

Water Bill / Mean Available Income

Less than 1%

More than 3%

slide16

5. Comparison at municipality level

Water Bill / Available Income

More than 2%

Only Water Distribution

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6. Results, limits and discussion

  • several groups of municipalities with ratio>3% (2-3% is a guidance value – see OCDE, EU, Académie de l’eau)
  • these groups of municipalities combine high water price and low mean available income (and sometimes household’s expenses to buy bottled water equivalent to annual water bill)
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6. Results, limits and discussion

  • the commonly used value of annual consumption of 120 m3 per household hides important differences of mean consumption per region
  • mean available income per municipality hides also various situations (and the real part of the population facing major difficulties to pay water bills)
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6. Results, limits and discussion

  • what to do ? Continue ! Refine this ratio and continue to track it in the coming years
  • pay a specific attention to the groups of municipalities where efforts to meet WFD objectives should lead to major increase in water price (extent solidarity principle, delay or less stringent objectives ?)
  • it raises this issue of specific social tariffs (e.g. Flanders’ experience, blocks tariffs, development of water savings, renew confidence in tap water)