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OECD Multilevel Governance Framework:A tool for effective water governance

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In its report “Water governance in OECD Countries – A multi-level approach” OECD addressed the major co-ordination and capacity-building issues related to the design, regulation and implementation of water policies. It focused on three points: the role and responsibilities of public actors in water policy at central and sub-national levels, the governance challenges related to their interaction at horizontal and vertical levels, and the tools and strategies currently in use to enhance governance in the water sector. 

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Establishing social tariffs on water services in Portugal

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In Portugal, the uptake of connections to existing wastewater infrastructure is slower than expected. A study by ERSAR, the water regulator, suggests that this may be due to the high cost of connection. While in average it only represents 26% of monthly income, for low income households in some municipalities the cost of connection can reach three times their monthly income. To address this issue, ERSAR has recommended service providers to eliminate the connection charge and compensate this loss of revenue by increasing the fixed part of the tariff gradually over a five year period. In this way, all users will contribute to pay for the cost of connecting the unserved.

On another perspective, ERSAR has studied also affordability of services by users, which have enabled to say that there is no major macro-affordability problem in Portugal. At the municipal level, the cost of 10m3 of water and sanitation services as proportion of average household income is 0.39% for water and 0.17% for wastewater – reaching maximum values of 0.99% for water and 0.81% for wastewater in the most expensive municipalities.

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