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Coopération Européenne France - Bulgarie pour la Directive Cadre sur l’Eau Arnaud Courtecuisse Resident Twinning Adviser Twinning Project BG 07 IB EN 01.

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Presentation on theme: "Coopération Européenne France - Bulgarie pour la Directive Cadre sur l’Eau Arnaud Courtecuisse Resident Twinning Adviser Twinning Project BG 07 IB EN 01."— Presentation transcript:

1 Coopération Européenne France - Bulgarie pour la Directive Cadre sur l’Eau Arnaud Courtecuisse Resident Twinning Adviser Twinning Project BG 07 IB EN 01 Water Framework Directive, Cost- recovery Analysis & impact on water price Illustration & hypothesis on the Black Sea River basin

2 Coopération Européenne France - Bulgarie pour la Directive Cadre sur l’Eau Content of the presentation 1. The objectives of the twinning project 2. WFD & Cost recovery : which demand from the WFD, which use for water management policy 3. Investigating links between programme of measures and tariffs : illustration on the Black Sea River Basin

3 Coopération Européenne France - Bulgarie pour la Directive Cadre sur l’Eau 1. The main objectives of the project 1. Strengthening the administrative capacity and support the implementation of the WFD through economic approaches and instruments i.e. implement economic methods and approaches wherever it helps in the WFD’s implementation process (tools for selecting measures, to assess and justify exemptions requirements, to implement incentive pricing policy). The twinning Project BG 07 IB EN 01 Start : March 2009 End : September 2010

4 Coopération Européenne France - Bulgarie pour la Directive Cadre sur l’Eau 1.The main objectives of the project 2. Development of a Water Information System - to strenghten the data collection and process regarding fees - to integrate more economic information - to develop dashboards for monitoring both at basin and National level - to ensure a good reporting at national level The twinning Project BG 07 IB EN 01 Start : March 2009 End : September 2010

5 Coopération Européenne France - Bulgarie pour la Directive Cadre sur l’Eau Take account of the principle of recovery of the costs of water services, including environmental and resource costs, in accordance with the polluter pays principle. Calculate a Cost Recovery rate, transparency about the financial transfers Provide transparency about the financial transfers between water services and with other institutions. Article 9 of the WFD: 2. WFD & Cost recovery : which demand from the WFD, which use for water management policy

6 Coopération Européenne France - Bulgarie pour la Directive Cadre sur l’Eau 2. WFD & Cost recovery : which demand from the WFD, which use for water management policy

7 Coopération Européenne France - Bulgarie pour la Directive Cadre sur l’Eau To what point the users pay for the services they get? Do the bill they pay cover the real costs ? Capital, functioning, maintenance costs But also: damages costs to resources & to the environment =>each water district must: -assess these costs for each service -assess how much is paid by the users & show the costs which are not paid by the users (because of subsidies, transfers or damages «paid» by the resource or by the environment) 2. WFD & Cost recovery : which demand from the WFD, which use for water management policy

8 Coopération Européenne France - Bulgarie pour la Directive Cadre sur l’Eau that water-pricing policies provide adequate incentives for users to use water resources efficiently, and thereby contribute to the environmental objectives an adequate contribution of the different water uses, disaggregated into at least industry, households and agriculture, to the recovery of the costs of water services, taking account of the polluter pays principle. Regard to the social, environmental and economic effects of the recovery as well as the geographic and climatic conditions of the region No easy to assess environmental & resource damages Member States shall ensure by 2010: 2. WFD & Cost recovery : which demand from the WFD, which use for water management policy

9 Coopération Européenne France - Bulgarie pour la Directive Cadre sur l’Eau To ensure that the « PPP » (Polluter Pays Principle) is more or less applyed To ensure that water services are managed in a sustainable way (renewing…) Helps thinking about how to finance the PoM Link with water pricing: the hypothesis is that when costs are fully recovered, the price is incitative Incitative tarification is supposed to be an efficient tool to help reaching the WFD objectives 2. WFD & Cost recovery : which demand from the WFD, which use for water management policy

10 Coopération Européenne France - Bulgarie pour la Directive Cadre sur l’Eau IndicatorsDataObjectives Cost of PoM inv + op cost of measures per type (extracted from national catalogue) and at Water body level Assess PoM cost per type of measures and at each scale level (from Water body to basin) Cost of measures regarding water price paid by households current water and sanitation price at municipality level household’s mean avalaible income at municipality level assessment of volume consumed per capita assumptions on financial scheme of measures Assess the level of Water price at municipality level in 2015 regarding the measures (water and sewerage) that will be implemented Cost of measures regarding Industry and agriculture Added Value for Industry in 2006 past « Water prortection » investment from industry Added value for Agriculture Assess the weight of Industrial (Agriculture) measures regarding Industrial (agricultural) Added value 2. WFD & Cost recovery : which demand from the WFD, which use for water management policy

11 Coopération Européenne France - Bulgarie pour la Directive Cadre sur l’Eau 3. Illustration & Hypothesis on the Black Sea River Basin Programme of measures Total Cost in € Total cost linked with WWTP and Sewage network % 2015 Price Lv/m3 Hypothesis of financing ?

12 Coopération Européenne France - Bulgarie pour la Directive Cadre sur l’Eau 3. Illustration & Hypothesis on the Black Sea River Basin Mean water price in 2009 for BSBD

13 Coopération Européenne France - Bulgarie pour la Directive Cadre sur l’Eau + 7,6 leva /m3

14 Coopération Européenne France - Bulgarie pour la Directive Cadre sur l’Eau – the rough estimation lead to an important increase (around 7 leva/m3) but with : - more than half of it due to renewal of drinking water supply - setting as environmental objectives the GES in amortization of the assets -The real increase might be lower….but anyway quiet important ! - in any case, the follow up (through survey) of the water and sanitation prices should be done in the coming years

15 Coopération Européenne France - Bulgarie pour la Directive Cadre sur l’Eau WFD request: transparency on financial transfers (including taxes), sustainability, incitativity (price as a tool) Even if investments are nowaday highly subsidised, include their depreciation in the price for future renewal & to incite water savings if there are quantitative problems Aiming a full cost recovery can lead to a price explosion and to a drop in consumption that may unbalance water services financially (fixed costs) Social tarification may limit the effects on water price Incitativity can also be found through subsidies systems, specific taxes, other economic systems (funds…), through regulation… It can be necessary to degrade the level of cost recovery to implement the WFD

16 Coopération Européenne France - Bulgarie pour la Directive Cadre sur l’Eau Благодаря за вниманиетo


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