7 novembre 2002

1 AC - Agence de l’eau Artois-Picardie Vienna, 22 June 2005

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 CourtecuisseAgence de l’Eau Artois-Picardie – France

7 novembre 2002

2 AC - Agence de l’eau Artois-Picardie Vienna, 22 June 2005

Content of the presentation

1. The objectives of the survey

2. The Artois-Picardie basin’s context

3. Water price survey

4. Assessment of household’s available income

5. Comparison Water bill vis à vis available income

6. Results, limits and discussion

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3 AC - Agence de l’eau Artois-Picardie Vienna, 22 June 2005

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

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5 AC - Agence de l’eau Artois-Picardie Vienna, 22 June 2005

2. The context of the Artois-Picardie Basin

• 20 000 Km2

• 4,7 Millions inhabitants

• GDP: 98 billions € • GPD/inhabitant: 21 107 €

• GPD/inh France: 25 978 €

Rivers quality assessment

• 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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8 AC - Agence de l’eau Artois-Picardie Vienna, 22 June 2005

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 surveyM

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10 AC - Agence de l’eau Artois-Picardie Vienna, 22 June 2005

3. Water price survey

Water Distribution

Sewerage

Environmental Taxes

Other taxes

VAT

The breakdown of the 3,28 euros

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11 AC - Agence de l’eau Artois-Picardie Vienna, 22 June 2005

CountryConsumption

(liter/day/personn

Mean water price m3Water +

sewerage+taxes(euros/m3)

SpainIrelandLuxembourgUKItalySwedenPortugalGreeceFranceFinlandGermanyBelgiumNetherlandsDanmarkAustria

130135150150160180190200113116118120126138150

1,00

0,901,60,8

1,151,01,12,62,53,61,92,74,32,6

IWA

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Mean available income per household

Aisne 23 499Nord 24 314Pas de Calais 23 194Somme 23 796

table 1 : Mean available income per household in all the sub-region of the Artois-Picardie Basin.Source : INSEE (National Statistics) + CEGMA TOPO

4. Assessment of household’s available income

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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

 

Mean available income per

household (A)

Mean Water invoice per household

(120m3/year) (B) B/A

Aisne 23 499 455 1,94%

Nord 24 314 366 1,51%

Pas de Calais 23 194 428 1,85%

Somme 23 796 382 1,61%

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

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Water bill / mean available Income

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5. Comparison at municipality level

More than 3%

Less than 1%

Water Bill / Mean Available Income

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More than 2%

Water Bill / Available Income

Only Water Distribution

5. Comparison at municipality level

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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)