There are many advantages of water privatisation. Private companies are often more efficient than governments due to free market competition leading to ‘lower prices, improved water quality, more choice, less red tape and quicker delivery’. Privately-owned industries often have more incentive and expertise to ensure their businesses succeed, whilst governments may be politically motivated and prone to corruption. Such factors allow private water companies to generate large profits and a high rate of return, allowing further investment. publicly owned companies are ‘required to be more accountable to the broader community and political stakeholders’ private companies are better able to serve their customers and make unbiased decisions. Private companies also have a greater financial ability to finance the large investments and technical expertise needed to repair and improve the water systems and meet new European water quality standards. In cities in India, private operator, Veolia, increased water supply from once every two to 15 days for a couple of hours to 24/7 water for 180,000 people (12 per cent of the population of the three cities) within two years of starting operations in Though in many cases prices increased for those who previously had access to water, millions finally had access to piped water, thereby lowering child mortality — and facilitating better hygiene. the current inefficient system actually is much more expensive for the poor because of the high cost per unit and productive time lost in collecting water.

WATER BILLS FOR LUCIO MORALES Classified “R-2” Morales’ household is among the very poorest of the poor. As the bill indicates, there is no meter reading, no increase in water use. This is one of many houses that have no water meter and billed based on a basic rate. This bill would amount to more than 10% of the monthly minimum wage at the time.

WATER BILLS FOR GERMAN JALDIN Classified “R-3” Jaldin’s household is just a notch among the very poorest, meaning that they may have an indoor shower or tap in the kitchen. Mr. Jaldin’s monthly increase was equal to more than 20% of a monthly minimum wage salary, a typical earning for households with his water rate classification.

African governments, such as Ghana, increasingly give in to pressures for water privatization. In Ghana, the World Bank and IMF policies forced the sale of water at market rate, requiring the poor to spend up to 50 percent of their earnings on water purchases.

Rising Prices and Deteriorating Water Quality Australia - In 1998, the water in Sydney, was contaminated with high levels of giardia and cryptosporidium shortly after its water was overtaken by Suez Lyonnaise des Eaux. Canada - At least seven people died as a result of E. coli bacteria in Walkerton, Ontario, after water testing had been privatized by A&L Labs. The company treated the test results as "confidential intellectual property" and did not make them public. Morocco - Consumers saw the price of water increase threefold after the water service was privatized in Casablanca. Argentina - When a Suez Lyonnaise des Eaux subsidiary purchased the state-run water company Obras Sanitarias de la Nacion, water rates doubled but water quality deteriorated. The company was forced to leave the country when residents refused to pay their bills. Britain - Water and sewage bills increased 67 percent between 1989 and The rate at which people's services were disconnected rose by 177 percent. New Zealand - Citizens took to the streets to protest the commercialization of water. South Africa - Water became inaccessible, unaffordable, and unsafe after the water supply was privatized by Suez Lyonnaise des Eaux in Johannesburg. Cholera infections became widespread and thousands of people were disconnected from their supply of water.