An increasing amount of investment in wastewater infrastructure, water conservation measures and tariff restructuring have driven a 1.9% increase in water and wastewater tariffs in Asia Pacific since 2017, according to results released in a new white paper The Global Value of Water released by GWI. The paper found that Foshan-Chancheng had the highest increase of 27.3%.
The White paper findings are based on the results of GWI's 2018 Global Water Tariff Survey and were published in partnership with Arup and The Global Water Leaders Group (GWLG). The 2018 survey is the most extensive yet carried out by GWI, calculating changes to the price of urban water and wastewater in 512 cities across 191 countries, based on a benchmark of an urban household of four using 15/m3.
Ulan Bator’s combined tariffs increased by 14.2% driven by a hike in wastewater tariffs as the city accepted a $300 million loan for the construction of a new wastewater treatment plant. A 44.1% increase in wastewater tariffs in Daegu, occurred after a central government recommendation for local governments to raise sewer fees by up to 60% of the cost of installation and maintenance of sewage treatment infrastructure.
Reforms to tariff structures implemented in 2014 continue to be felt in China. In three districts in Foshan City, the ration of block tariffs for water increased to 1:1.5.3, a result of a 2014 law to penalise high volume users. This resulted in the combined rates for Foshan-Changcheng to rise by 27.3%.
Drought-Pricing and water conservation measures also contributed to tariff increases in Asia Pacific. Australia introduced punitive water tariffs for consumption greater than 500m3/year whilst also implementing lower than planned increases in their fixed charge. Australia has the most expensive water tariff in the region, and third globally with an average combined water and wastewater tariff of US $5.6m/3.
Top Percentage tariff changes in the Asia Pacific Region from 2017-2018.
|
City |
Percentage change from 2017-2018 |
|
Foshan-Chancheng (China) |
27.3% |
|
Singapore (Singapore) |
14.6% |
|
Ulan Bator (Mongolia) |
14.3% |
|
Daegu (South Korea) |
13.4% |
|
Shenzhen (China) |
11.9% |
|
Foshan – Shunde (China) |
10.1% |
|
Shijiazhuang (China) |
9.9% |
|
Ulsan (South Korea) |
9.1% |
|
Kumamoto (Japan) |
8.0% |
The Global Value of Water and The Global Water Tariff Survey are available as part of a subscription to GWI Magazine, visit www.globalwaterintel.com/gwi/tariffsurvey
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The Global Water Tariff Survey is the leading repository of global water tariff data and analysis, featuring urban water & wastewater tariff profiles from 512 locations. It is updated annually by Global Water Intelligence (GWI). It calculates changes to the price of urban water and wastewater in 512 cities, based on a benchmark of an urban household of four using 15 m3/month.
The Global Value of Water is a Global Water Leaders Group (GWLG) white paper, containing detailed analysis of the results of the Global Water Tariff Survey 2018 and insights from the following contributors:
- Justin Abbott, Director, Global Water Skills Leader, Arup
- Dr Rolfe Eberhard, Independent Public Policy Advisor
- Dr Mark Fletcher, Director, Global Water Leader Arup
- Siegfried Gendries, Independent Consultant
- Steve Lloyd, Director, UKIMEA Advisory Services Leader, Arup
- Adam Lovell, Executive Director of the Water Services Association of Australia
- Dr William T. Muhairwe, Executive Director of the Global Water Leaders Group and founder of 2ML Consulting
- Professor Howard M. Neukrug, Senior Advisor to the Global Water Leaders Group and former CEO of Philadelphia Water
- Wang Qiang, Senior Supervisor at Shanghai Chengtou Corporation
The Global Value of Water and The Global Water Tariff Survey are available to all GWI Magazine subscribers who can download it from www.globalwaterintel.com. To purchase a subscription to GWI Magazine, contact nrumpaisum@globalwaterintel.com
