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Water Utilities & Society
Water utilities & Society
What is a water utility?
What is a water utility?
● Whole set of
– Organization, processes,
activities, means and
resources
● necessary for
– Abstr...
Coliban Water
Water Utility Value Chain
Water Services Sanitation
DistributionRetail
Ocean, rivers and groundwater (natural environment)...
Water Services
● Core
– Water supply
– Sewerage services
● Enhancing
● Billing & payment
● Information provision
● Facilit...
Porter's Five Forces
● New entrants
● Supplier power
● Customer power
● Substitute services
Porter, M. (1979). How competi...
Water utilities & Society
Sustainability
Environmental Sustainability
● Nature as an
economic
externality
● Ecosystem services
● Water as
commodity
● Tragedy of th...
Sustainability in water
“sustainable use of water requires the
development and maintenance of a required flow
of benefits ...
Climate Change
Source: CSIRO
Victoria's Water Crisis
2000 to 2011 overall annual water
consumption in Melbourne dropped
by approximately 30 per cent.
S...
The Utility Death Spiral
Source: freese.com
Water: ᾿need᾽ or ᾽want᾽?
● Needs
– State of felt deprivation
– Innate
● Wants
– Shaped by society
– Learned
Source: timvan...
Beyond Needs & Wants
Demarketing
● Lowering demand
through marketing
– Social marketing
– Price increase
– Restrictions
Water utilities & Society
Social Corporate Responsibility
Social Responsibility
The one and only
obligation of business
is to maximise is
profits while engaging
in open and free
co...
Affordability
● Financial hardship
● Empathy
● No total
disconnection
Vulnerable customers require
protection.
Public Health
● Walkerton Tragedy
– E.coli contamination
from farm run-of
– 2500 people ill
– 7 deaths
p
Walkerton Tragedy...
Is water a public good?
Excludable Non-excludable
Rival Private Common-pool
Non-rival Club Public
Water utilities & Society
Summary
Water Utilities and Society
Water Utilities and Society
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Water Utilities and Society

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Overview presentation about the role of water utilities from a macromarketing perspective

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Transcript of "Water Utilities and Society"

  1. 1. Water Utilities & Society
  2. 2. Water utilities & Society What is a water utility?
  3. 3. What is a water utility? ● Whole set of – Organization, processes, activities, means and resources ● necessary for – Abstracting, treating, distributing or supplying drinking water – Collecting, treating and disposing of wastewater – Providing the associated services Water utilities in Monopoly board game.
  4. 4. Coliban Water
  5. 5. Water Utility Value Chain Water Services Sanitation DistributionRetail Ocean, rivers and groundwater (natural environment) Raw Water Distribution Customers Drinking WaterDistribution Harvest Treatment Recycled Water Distribution Treatment Waste Water NaturalWaterCycle CollectionTreatment Treatment
  6. 6. Water Services ● Core – Water supply – Sewerage services ● Enhancing ● Billing & payment ● Information provision ● Facilitating ● Developer support ● Complaint handling ● Information provision Core service for water utilities is the supply of safe drinking water
  7. 7. Porter's Five Forces ● New entrants ● Supplier power ● Customer power ● Substitute services Porter, M. (1979). How competitive forces shape strategy. Harvard Business Review, 57(2).
  8. 8. Water utilities & Society Sustainability
  9. 9. Environmental Sustainability ● Nature as an economic externality ● Ecosystem services ● Water as commodity ● Tragedy of the commons Economics Ecology Equitable Viable Bearable Sustain- able Society Source: World Conservation Union
  10. 10. Sustainability in water “sustainable use of water requires the development and maintenance of a required flow of benefits to a particular group or place, undiminished over time without reducing benefits to other groups or ecosystems” Gleick, Peter (1998), Water in Crisis: Paths to Sustainable Use, Ecological Applications 8 (3), 571–579.
  11. 11. Climate Change Source: CSIRO
  12. 12. Victoria's Water Crisis 2000 to 2011 overall annual water consumption in Melbourne dropped by approximately 30 per cent. Source: Office of Living Victoria 2000 to 2011 overall annual water consumption in Melbourne dropped by approximately 30 per cent. Source: Office of Living Victoria Dramatic reduction of reservoir inflows.. Source: Coliban Water
  13. 13. The Utility Death Spiral Source: freese.com
  14. 14. Water: ᾿need᾽ or ᾽want᾽? ● Needs – State of felt deprivation – Innate ● Wants – Shaped by society – Learned Source: timvandevall.com
  15. 15. Beyond Needs & Wants
  16. 16. Demarketing ● Lowering demand through marketing – Social marketing – Price increase – Restrictions
  17. 17. Water utilities & Society Social Corporate Responsibility
  18. 18. Social Responsibility The one and only obligation of business is to maximise is profits while engaging in open and free competition without deception or fraud” Milton Friedman, Capitalism and Freedom
  19. 19. Affordability ● Financial hardship ● Empathy ● No total disconnection Vulnerable customers require protection.
  20. 20. Public Health ● Walkerton Tragedy – E.coli contamination from farm run-of – 2500 people ill – 7 deaths p Walkerton Tragedy: E.coli contamination from farm run-of. 2500 people ill. 7 deaths.
  21. 21. Is water a public good? Excludable Non-excludable Rival Private Common-pool Non-rival Club Public
  22. 22. Water utilities & Society Summary
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