Cost Recovery in Urban Water Services : Select Experiences in Indian Cities

The report draws on a Water and Sanitation Program (WSP) study from 2008 which made a comparative analysis of 23 Urban Local Bodies (ULBs)-looking at seven cities in detail and another 16 based on secondary data-to understand the factors affecting...

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Bibliographic Details
Main Author:	Gupta, Anjali Sen
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	ACCESS TO WATER ALTERNATIVE WATER ALTERNATIVE WATER SOURCES ANNUAL WATER CHARGE AUGMENTATION BLOCK TARIFF BLOCK TARIFFS BULK CONSUMERS BULK SUPPLY CASH FLOW CITY WATER COLLECTION EFFICIENCY CONNECTED HOUSEHOLDS CONNECTION CONNECTION CHARGE CONNECTION CHARGES CONNECTION COSTS CONNECTION FEE CONSUMPTION CHARGES CONSUMPTION OF WATER COST OF WATER COST RECOVERY COSTS OF WATER SUPPLY CUBIC METER DECISION MAKERS DECISION MAKERS NEED DELIVERY OF WATER DISCONNECTION FOR NONPAYMENT OF BILLS DISTRIBUTION NETWORK DOMESTIC CONNECTION DOMESTIC CONSUMERS DOMESTIC USERS DRINKING WATER EFFICIENT BILLING FIXED CHARGE FIXED CHARGES FLOW METERS FREE WATER HIGH LEVELS HIGH WATER LOSSES HOUSE CONNECTION HOUSE CONNECTIONS HOUSEHOLD BILLS HOUSEHOLD CONNECTIONS HOUSEHOLD CONSUMPTION HOUSEHOLD INCOME HOUSEHOLDS ILLEGAL CONNECTION IMPROVING SERVICE DELIVERY INTERMITTENT WATER SUPPLY LEAK REPAIRS LEAKAGE LIFELINE BLOCK LOW-INCOME HOUSEHOLDS MAINTENANCE COSTS MARGINAL COST METER READING METER READINGS METERING METROPOLITAN CITIES METROPOLITAN WATER SUPPLY MONTHLY BILLS MONTHLY CHARGE MONTHLY WATER MONTHLY WATER BILLS MUNICIPAL SERVICE PROVIDERS MUNICIPAL SOLID WASTE MUNICIPAL WATER OPERATIONAL COSTS OPERATIONAL EFFICIENCY OPERATIONAL IMPROVEMENTS OPERATIONAL PRACTICES OPERATOR CONTRACT OVERHEAD TANK PERFORMANCE IMPROVEMENTS PIPE LAYING PRICE DETERMINATION PUBLIC HEALTH PUBLIC HEALTH ENGINEERING PUBLIC SERVICE PROVIDERS PUBLIC TAPS PUBLIC UTILITIES PUBLIC WATER PUMPING PUMPS QUALITY OF SERVICE REDUCING WATER LOSSES REGULATORY FRAMEWORK REGULATORY REFORM REGULATORY STRUCTURES RESOURCE CONSERVATION REVENUE GENERATION RURAL WATER RURAL WATER SUPPLY SANITATION SANITATION PROGRAM SANITATION SECTOR SANITATION SERVICES SERVICE DELIVERY SERVICE IMPROVEMENT SERVICE IMPROVEMENTS SERVICE PROVIDER SERVICE PROVIDERS SERVICE PROVISION SERVICE STANDARDS SEWAGE TREATMENT SEWAGE TREATMENT PLANT SEWERAGE SLUM DWELLER SLUM DWELLERS SOLID WASTE SOLID WASTE MANAGEMENT SUSTAINABLE SERVICE DELIVERY TARIFF LEVEL TARIFF LEVELS TARIFF RATES TARIFF REFORM TARIFF REVISIONS TARIFF STRUCTURE TARIFFS FOR WATER SUPPLY URBAN AREAS URBAN LOCAL URBAN SERVICE DELIVERY URBAN WATER URBAN WATER SECTOR URBAN WATER SERVICES URBAN WATER SUPPLY USE OF WATER USER CHARGES USERS VOLUME OF WATER VOLUMES OF WATER VOLUMETRIC CHARGE WASTAGE WATER AUTHORITY WATER BILL WATER CHARGE WATER CHARGES WATER CONSERVATION WATER COVERAGE WATER DEMAND WATER DEPARTMENT WATER LOSSES WATER PRESSURE WATER RESOURCE WATER RESOURCES WATER SAVINGS WATER SECTOR WATER SERVICE WATER SERVICE PROVIDERS WATER SERVICES WATER SOURCE WATER SOURCES WATER SUPPLY SERVICES WATER TARIFF WATER TARIFFS WATER TREATMENT WATER TREATMENT PLANT WATER UTILITIES
Online Access:	http://documents.worldbank.org/curated/en/2011/03/14893347/cost-recovery-urban-water-services-select-experiences-indian-cities http://hdl.handle.net/10986/17308

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Summary:	The report draws on a Water and Sanitation Program (WSP) study from 2008 which made a comparative analysis of 23 Urban Local Bodies (ULBs)-looking at seven cities in detail and another 16 based on secondary data-to understand the factors affecting cost recovery in India and provide an indication of current performance. It also draws out examples and lessons to inform reform approaches and guidelines for reform. The first part of the paper discusses operational and tariff-related factors that impede cost recovery by urban water service providers in India, especially low service coverage; high water losses and nonrevenue water; inefficient metering, billing and collection; and high staffing levels. It also shows that distorted tariff structures and subsidies undermine cost recovery further, and often benefit middle and upper income levels, rather than the poor. The second part of the note discusses policy reform and practical initiatives and options to achieve improved cost recovery and, by implication, achieve service improvements, capital maintenance, and expansion of coverage.

Cost Recovery in Urban Water Services : Select Experiences in Indian Cities

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