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

1. 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

2. 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

3. 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

4. 2. The context of the Artois-Picardie Basin

5. 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

7. 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

8. 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

9. 3. Water price survey Mean Price for one m3

10. 3. Water price survey The breakdown of the 3,28 euros Water Distribution Sewerage Environmental Taxes Other taxes VAT

11. IWA

12. 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

13. 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

14. Water bill / mean available Income

15. 5. Comparison at municipality level Water Bill / Mean Available Income Less than 1% More than 3%

16. 5. Comparison at municipality level Water Bill / Available Income More than 2% Only Water Distribution

17. 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)

18. 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)

19. 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)