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PPI for Water and Sewerage in Sweden

PPI for Water and Sewerage in Sweden. 27th Voorburg Group meeting Warsaw, Poland October 4 th 2012. Content. Structure of the industry Background to the construction of PPI for Water supply Price collection and weight calculation Index calculation Reasons for a new review

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PPI for Water and Sewerage in Sweden

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  1. PPI for Water and Sewerage in Sweden 27th Voorburg Group meeting Warsaw, Poland October 4th 2012

  2. Content • Structure of the industry • Background to the construction of PPI for Water supply • Price collection and weight calculation • Index calculation • Reasons for a new review • Questions for the 2012 review

  3. Structure of the industry HOUSEHOLDS • Almost all water consumed by households is produced and treated by municipal plants. Municipalities are required by law to provide water and sewerage services. • Revenues for the business may not exceed necessary costs. • Raw water for tap water production is taken both from ground water and surface water. Mainly larger cities use surface water.

  4. Structure of the industry THE INDUSTRY SECTOR • The industry sector is almost completely self-sufficient in water supply. Only 5 % comes from other sources. • The most important water source is surface water from rivers and lakes, but also from the sea. • Wastewater treatment mainly done in-house.

  5. Background to the construction of PPI for Water supply • First published on the web for January 2000. • A review in 2003 - Changed method from survey to collected data due to a volatile index. • Sweden only covers Water supply. Sewerage not included but is to some extent integrated in Water supply. • Hard to measure the price for households and companies self-supply of water.

  6. Price collection • Prices collected are from municipal plants. Data for two type houses is collected from all municipalities by the trade association SvensktVatten (Swedish water). • The two type houses, A and B, are an average house and an average apartment building with the amount of water consumed specified. • We calculate a weighted average of the annual cost of each type house.

  7. Weight calculation • Weights for Type house A and B is based on the amount of houses in these forms in the country as well as the cost for respective house. • Weight for NACE 36 in the total PPI is based on the total production of water from municipal plants and the cost for water from municipal plants.

  8. Index calculation • Compilation of prices from all municipalities are usually not completed until sometime during the summer. • CPI index Water and Sewerage used as a proxy in January. • Only two price updates per year as seen in the chart on the next page.

  9. Reasons for a new review • Long time since last review (9 years). Do we cover what is produced in the industry and can we do better? • Concerns regarding calculations of weights. Can the calculation be more intuitive?

  10. Questions for the 2012 review • Can we include sewerage as an own division? • Should we split surface- and groundwater according to NACE Rev. 2? • What does National accounts want? Currently use CPI rather than PPI. • Could we replace PPI with CPI?

  11. Emma Strand Statistics Sweden +46 8 506 947 17 emma.strand@scb.se

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