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Which price for water & sanitation services ?
Marie-Louise Simoni, François Guerber, Jean-Pierre-Nicol and Pierre-Alain Roche
Which price for water & sanitation
services ?
Accompanying a revolution of the water
sector’s institutions and governance in
France
Public report from the Environment General Inspectorate
http://www.cgedd.developpement-durable.gouv.fr/eau-
potable-et-assainissement-a-quel-prix-a2196.html
2
Which price for water & sanitation services ?
Marie-Louise Simoni, François Guerber, Jean-Pierre-Nicol and Pierre-Alain Roche
Water & sanitation services in France
• water prices are estimated by the bill for a
theoretical consumption of 120 m3
• each of the 24 000 local authorities has its own
price
• consolidation of data at national scale is difficult
• prices well controlled
• public services fully financed by the
water price without subsidies from the
State
• service quality and performance
reported every year since 2007
• in the future, pollution from
agriculture, leaks control and sewage
networks may still need investments
3
Which price for water & sanitation services ?
Marie-Louise Simoni, François Guerber, Jean-Pierre-Nicol and Pierre-Alain Roche
Local authorities organizing the service
Current number Number in 2020 Power Population
20 20 mighty > 300 000
200 300 strong 50 000 / 500 000
2000 1400 week 15 000 / 100 000
22 000 200 Very week < 15 000
•Situation in 2020: less than 2 000 authorities, new regulation and control become
necessary
Information on performance and costs will be easier to collect
•Current situation: more than 24 000 local authorities with around 800 calls for
bidding per year
Competition providing reasonable price and productivity increase, except in small
services
Statistics on prices are difficult, based on one single price per local authority: the
price paid for a reference consumption of 120 m3/year
4
Which price for water & sanitation services ?
Marie-Louise Simoni, François Guerber, Jean-Pierre-Nicol and Pierre-Alain Roche
Conventional price : 120m3/subscriber/year
Drinking Water
Sanitation
5
Which price for water & sanitation services ?
Marie-Louise Simoni, François Guerber, Jean-Pierre-Nicol and Pierre-Alain Roche
Accompanying measures
• mergers taking into account
physical infrastructure and
water resources capacities
• deep improvement of the
Water Information System:
existing performance indicators
will be complemented by new
structured data on costs and
explanatory factors
6
Which price for water & sanitation services ?
Marie-Louise Simoni, François Guerber, Jean-Pierre-Nicol and Pierre-Alain Roche
Accompanying measures
Bill < 3% of income (Grenoble)
• Access to water and sanitation,
especially in overseas territories
• 50 experiments regarding social
tariffs, including enquiries on real
individual bills
7
Which price for water & sanitation services ?
Marie-Louise Simoni, François Guerber, Jean-Pierre-Nicol and Pierre-Alain Roche
Accompanying measures
a national Pact for water &
sanitation services
performance and costs, to be
negotiated between local
authorities and private
companies under the strategic
supervision of State:
1. financial measures: lowering VAT on
sanitation back to its previous level
(5,5%); subsidized loans etc.
2. objectives and improvements
defined by local authorities and
monitored so as to assess
performance and price every 5 years,
based on similar contracts for public
or private operators

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Drinking water and sanitation at which price

  • 1. 1 Which price for water & sanitation services ? Marie-Louise Simoni, François Guerber, Jean-Pierre-Nicol and Pierre-Alain Roche Which price for water & sanitation services ? Accompanying a revolution of the water sector’s institutions and governance in France Public report from the Environment General Inspectorate http://www.cgedd.developpement-durable.gouv.fr/eau- potable-et-assainissement-a-quel-prix-a2196.html
  • 2. 2 Which price for water & sanitation services ? Marie-Louise Simoni, François Guerber, Jean-Pierre-Nicol and Pierre-Alain Roche Water & sanitation services in France • water prices are estimated by the bill for a theoretical consumption of 120 m3 • each of the 24 000 local authorities has its own price • consolidation of data at national scale is difficult • prices well controlled • public services fully financed by the water price without subsidies from the State • service quality and performance reported every year since 2007 • in the future, pollution from agriculture, leaks control and sewage networks may still need investments
  • 3. 3 Which price for water & sanitation services ? Marie-Louise Simoni, François Guerber, Jean-Pierre-Nicol and Pierre-Alain Roche Local authorities organizing the service Current number Number in 2020 Power Population 20 20 mighty > 300 000 200 300 strong 50 000 / 500 000 2000 1400 week 15 000 / 100 000 22 000 200 Very week < 15 000 •Situation in 2020: less than 2 000 authorities, new regulation and control become necessary Information on performance and costs will be easier to collect •Current situation: more than 24 000 local authorities with around 800 calls for bidding per year Competition providing reasonable price and productivity increase, except in small services Statistics on prices are difficult, based on one single price per local authority: the price paid for a reference consumption of 120 m3/year
  • 4. 4 Which price for water & sanitation services ? Marie-Louise Simoni, François Guerber, Jean-Pierre-Nicol and Pierre-Alain Roche Conventional price : 120m3/subscriber/year Drinking Water Sanitation
  • 5. 5 Which price for water & sanitation services ? Marie-Louise Simoni, François Guerber, Jean-Pierre-Nicol and Pierre-Alain Roche Accompanying measures • mergers taking into account physical infrastructure and water resources capacities • deep improvement of the Water Information System: existing performance indicators will be complemented by new structured data on costs and explanatory factors
  • 6. 6 Which price for water & sanitation services ? Marie-Louise Simoni, François Guerber, Jean-Pierre-Nicol and Pierre-Alain Roche Accompanying measures Bill < 3% of income (Grenoble) • Access to water and sanitation, especially in overseas territories • 50 experiments regarding social tariffs, including enquiries on real individual bills
  • 7. 7 Which price for water & sanitation services ? Marie-Louise Simoni, François Guerber, Jean-Pierre-Nicol and Pierre-Alain Roche Accompanying measures a national Pact for water & sanitation services performance and costs, to be negotiated between local authorities and private companies under the strategic supervision of State: 1. financial measures: lowering VAT on sanitation back to its previous level (5,5%); subsidized loans etc. 2. objectives and improvements defined by local authorities and monitored so as to assess performance and price every 5 years, based on similar contracts for public or private operators