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Assessing Cost Recovery

A New Comparative Framework in Line with WFD Article 9

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Britta Ammermüller

This study proposes a comparative accounting framework for assessing cost recovery of water supply and sewerage services for households and agriculture in line with the requirements of Article 9 of the EU Water Framework Directive (WFD). It provides an integrative analysis of the partly contradictory objectives of Article 9 and the Directive’s approach to cost recovery. The book defines cost categories and accounting guidelines in line with the specific requirements of WFD Article 9. On this basis, an integrative framework for analysing different financing schemes for water services provision and their compliance with the objectives of Article 9 is developed, along with a pragmatic approach for the incorporation of environmental and resource costs in the overall cost recovery analysis.

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List of Tables 11

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11 List of Tables Table 1: Milestones of WFD implementation .......................................... 32 Table 2: Classifying water services under full and spare system capacity ...................................................................................... 73 Table 3: Different approaches to cost-recovery ...................................... 79 Table 4: Possible financing approaches for water services provision ...... 83 Table 5: Examples of administrative costs ............................................... 97 Table 6: Operation and maintenance costs in water services provision to households ............................................................................. 107 Table 7: Summary overview on water pricing models ............................. 134 Table 8: Environmental costs of water services ...................................... 153 Table 9: Indicators on the general characteristics of the investigation area ................................................................ 205 Table 10: Remaining information requirements on additional Article 9 objectives ................................................................................... 213 Table 11: General characteristics of the German water sector ................. 235 Table 12: General characteristics of the Emscher river basin .................... 242 Table 13: General characteristics of drinking water service provision in Berlin ...................................................................................... 247 Table 14: Basic facts on the technical system (Berlin) ............................... 247 Table 15: Evolution of water demand in Berlin, 1992–2007 ..................... 249 Table 16: General characteristics of irrigation water service provision in Emilia-Romagna ......................................................................... 260 Table 17: Overview on cost categories for drinking water service provision in Berlin ...................................................................... 268 Table 18: Fixed tariff component (Berlin) .................................................. 277 Table 19: Connection fee (in Euro) as of 28 January 2009 (excluding 7 percent VAT) (Berlin) ............................................. 278 Table 20: Conditions for investment contributions on the replacement of connections (Berlin) ............................................................... 279 Table 21: Tarification scheme for irrigation water provision from open canals (CBRO) ............................................................................. 285 Table 22: Status of implementation: reconstruction of the Emscher river basin ........................................................................................... 291 12 Table 23: Internalisation instrument ‘Abwasserabgabe’ ........................... 299 Table 24:...

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