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2.1 Indicator definition

The indicator is split into two elements: a) Financial cost recovery of water services for public water supply; and b) Affordability of water services. The former is a simple plot of the average price level for water supply and sanitation services in European RBDs against their respective financial cost recovery levels, both as reported by the Member States. The latter is a ratio of household expenditure on ‘water supply and miscellaneous services relating to the dwelling’ to household income, compared to an ‘affordability threshold’ set at 5% for indicative purposes. It is presented along with ratios of expenditure on other household needs to consider the third dimension of water affordability.

Previous comments

  • veerenrob (Rob van der Veeren) 26 Jan 2022 19:09:26

    a) Financial cost recovery of water services for public water supply;

    I assume this should read 

    a) Financial cost recovery of the water services for public water supply and sanitation services;

    Since you are presenting the results for two water services, not one.

    • zalllnih (Nihat Zal) 04 Mar 2022 15:38:40

       Thanks. We have adjusted the text accordingly.


      a) Financial cost recovery of water services for public water supply;

      I assume this should read 

      a) Financial cost recovery of the water services for public water supply and sanitation services;

      Since you are presenting the results for two water services, not one.

       

  • veerenrob (Rob van der Veeren) 26 Jan 2022 19:12:55

    You would like to plot price levels with cost recovery rates? I thought you said in the beginning that data are incomparable. Of course, one can plot anything against anything, but what solid message can we get out of that? 

    • zalllnih (Nihat Zal) 04 Mar 2022 15:39:37

      The lack of comparability we point to before is not between price levels and financial cost recovery, it is between those two elements across countries and RBDs.


      You would like to plot price levels with cost recovery rates? I thought you said in the beginning that data are incomparable. Of course, one can plot anything against anything, but what solid message can we get out of that? 

       

  • mohauvol (Volker Mohaupt) 27 Jan 2022 11:50:51

    Due to the legal requirements of the municipal levy laws, it is generally assumed in the German parts of the river basin communities that there is full cost recovery.

    To verify this, the various federal states are carrying out further selected surveys and benchmarking projects. The result of these surveys confirm that the cost recovery rates for drinking water supply in Germany are currently around 100%. The individual results of the state projects for drinking water supply ranged from 95% to 107%, while the cost recovery rates for wastewater disposal ranged from 93% to 105%.

    There is no regular central survey of cost recovery rates in Germany.

    • zalllnih (Nihat Zal) 04 Mar 2022 15:40:40

       Thanks. We will explore how to add this (together with the NL case example) to the Accuracy and Uncertainties sub-section.


      Due to the legal requirements of the municipal levy laws, it is generally assumed in the German parts of the river basin communities that there is full cost recovery.

      To verify this, the various federal states are carrying out further selected surveys and benchmarking projects. The result of these surveys confirm that the cost recovery rates for drinking water supply in Germany are currently around 100%. The individual results of the state projects for drinking water supply ranged from 95% to 107%, while the cost recovery rates for wastewater disposal ranged from 93% to 105%.

      There is no regular central survey of cost recovery rates in Germany.

       

  • majovand (Andrea Majovska) 28 Jan 2022 13:48:22
    • Edit the sentence from „a) Financial cost recovery of water services for public water supply“ to „a) Financial cost recovery of water services for public water supply and sanitation services“.
    • It should be define what particular expenditures are calculated under „miscellaneous services relating to the dwelling’“. (i.e. classified under the Harmonized Indices of Consumer Prices (HICP) data category “Water Supply and Miscellaneous Services related to the Dwelling”. This aggregates the subcategories “Water Supply”, “Refuse Collection”, “Sewerage Collection”, and “Other Services Relating to the Dwelling, Not Elsewhere Classified”).
    • The definition „Financial cost recovery of water services for public water supply = is a simple plot of the average price level for water supply and sanitation services in European RBDs against their respective financial cost recovery levels“ is not correct. Recovery (on left side) can not be defined by recovery (on right side). We suggest to define cost recovery by using the formula: income/outcome x 100 = cost recovery (%).
    • There should be provided also a definition for cost of water services (see part 1 Indicators, i.e. The financial costs of water supply and sanitation services include operational and maintenance costs, capital investments, and management costs of water service providers (EC, 2003).) and exapmles of tools for recovery (see part 1. Indicators, i.e. These can be recovered through revenues from tariffs, associated taxes, and transfers of public funds (national and EU).)
    • zalllnih (Nihat Zal) 04 Mar 2022 15:44:00

       

      • Edit the sentence from „a) Financial cost recovery of water services for public water supply“ to „a) Financial cost recovery of water services for public water supply and sanitation services“.

      We have adressed to this

      • It should be define what particular expenditures are calculated under „miscellaneous services relating to the dwelling’“. (i.e. classified under the Harmonized Indices of Consumer Prices (HICP) data category “Water Supply and Miscellaneous Services related to the Dwelling”. This aggregates the subcategories “Water Supply”, “Refuse Collection”, “Sewerage Collection”, and “Other Services Relating to the Dwelling, Not Elsewhere Classified”).

      This information is available in the accuracy and uncertainties section

      • The definition „Financial cost recovery of water services for public water supply = is a simple plot of the average price level for water supply and sanitation services in European RBDs against their respective financial cost recovery levels“ is not correct. Recovery (on left side) can not be defined by recovery (on right side). We suggest to define cost recovery by using the formula: income/outcome x 100 = cost recovery (%).

      The definition here does not refer to the concept of financial cost recovery in the theoretical sense, but to how we employ it in the design of the indicator. We will further internally discuss how to better adress it. 

      • There should be provided also a definition for cost of water services (see part 1 Indicators, i.e. The financial costs of water supply and sanitation services include operational and maintenance costs, capital investments, and management costs of water service providers (EC, 2003).) and exapmles of tools for recovery (see part 1. Indicators, i.e. These can be recovered through revenues from tariffs, associated taxes, and transfers of public funds (national and EU).)

       We will make sure the sufficient reference to the Guidance Document

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