Access to safe water and sanitation are human rights. Water and sanitation service providers must be able to operate and stay financially viable to serve everyone. But this ability is often at risk due to non-payment – including by government institutions.
Water that is treated and delivered has a cost, also water meant for public office buildings, security and policing facilities, and other public institutions such as public hospitals and schools. Except when they are exempt from payment by law, these public institutions should receive water bills and are expected to pay them. However, there is evidence to show that many do not, or that they pay with crippling delays.
These arrears contribute significantly to the financial and operational challenges faced by utilities. Non-payment thus has direct impact on the ability of utilities to provide adequate service and hampers the realisation of the human rights to water and sanitation.
Someone always pays. When governments don’t pay, people do. The burden shifts to those who face increased tariffs and those who are left with poor or no service, who pay with their health, time, and productivity. The impact on affordability of service is severe. The long-term social, economic and environmental costs are dramatic.
There are many ways to address the issue. Based on new research by WIN and End Water Poverty, this policy brief outlines best practices for service providers, regulators, public finance actors and water sector stakeholders.