10 Affordability and financing of water and sanitation
10.6.3 Free provision of the essential amount of water and of sanitation Under this option, a small amount of water sufficient for essential domestic uses is provided free through a network. In South Africa, this amount is set at 200 litres per household using as a basis an estimation of eight persons per household. Sewerage, where available, is not charged for users who only utilise the essential amount of water. It would be necessary for the subsidy to take into account the actual number of persons per household based on information for the particular area in question. In network settings, this subsidy is relatively easy to administer. The subsidy can also be provided through public standpipes, where the amounts used are normally limited as the users are only able to carry limited amounts of water. However, monitoring is required to prevent vandalism (including from small-scale providers whose business is affected by free provision), wastage and mis-use (for example by persons using vehicles to transport water). Providing free public toilets can help ensure access to sanitation. However, few such facilities are properly maintained.
Advantages • This system guarantees access to minimum essential levels of water and to sewerage to those with a household connection to a network. It might also assist those without access to a household connection through public water stand-pipes and toilets, where the government can adequately monitor and maintain these facilities. • A blanket approach of this nature has low administrative costs and is easier to apply where governments cannot effectively assess or estimate income levels. As it is available to everyone, this approach limits corruption.
Disadvantages • Many lower-income countries do not have public funds available for this untargeted subsidy, which would normally require significant funds provided from tax revenues. • This is an untargeted subsidy that also benefits middle and upper income groups. Since the subsidy is provided to all households, most developing country governments can normally only afford to provide a very small quantity of water free of charge, which may be insufficient for health purposes, and may need to fund the subsidy by higher charges for water volumes that are low, but are above the free amount. There is therefore a possibility that such a subsidy would provide no net benefit to households, particularly larger households. • It requires significant monitoring and/or maintenance. • If not funded from other sources than revenue from water and sewerage charges, this system undermines the financial sustainability of water services and the ability to extend services.
146
part iii • policies for implementation