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THE COST OF FRESHWATER CHARGING IN BRAZIL: SUPPLIERS’ MAIN ALTERNATIVES

Artigo publicado na revista Sustainable Water Resources Management (SWAM). Teixeira, T., Veiga, K., Julien, D. et al. The cost of freshwater charging in Brazil: suppliers’ main alternatives. Sustain. Water Resour. Manag. 9, 124 (2023). https://doi.org/10.1007/s40899-023-00908-0

ABSTRACT
Charging for the use of freshwater raises the debate about the financial sustainability of water suppliers and the problems of social and operational efficiency in the sector. The price of raw water, which aims to avoid wasteful uses and give an idea of the value of water, introduces a new cost element to be managed by users. Given the increased operating costs arising from the implementation of raw water charging, this paper analyzes alternatives for water suppliers. We compare a #1 cost absorption scenario with the possibility of passing on to final consumers in the first block tariff, defined by volume (#2a), and the second block tariff charged by additional m3 consumed (#2b). The results show that scenario #1 reduces the availability of resources for investments, compromising the maintenance of the infrastructure and the expansion of services. Alternatively, as a natural monopoly industry, consumer pass-through is more likely. Both scenarios #2a and #2b nullify the incentive for rational use and operational efficiency, add risks to environmental sustainability and compromise the plans of the basin committee. However, in scenario #2b, the possibility of lower water consumption by households, changing to the tariff of the first block, brings back the possibilities of scenario #1. Scenario #2a, as a plausible choice, requires an accurate discussion of the social, institutional, and environmental aspects of water governance without losing attention to local particularities. To exemplify the discussion, we tested these scenarios in a Brazilian semi-arid watershed where the freshwater charging is not yet in force.

Dra. Telma C. S. Teixeira - Líder do grupo RHIOS
Bl. Karine dos S. Veiga - RHIOS,
Msc. Denis L.L Julien - RHIOS,
Dr. Frank Pavan de Souza - RHIOS, ISECENSA

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Karine Veiga,
Denis Julien,
Frank Pavan de Souza,
Telma Teixeira

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CHARGING FOR WATER WITHDRAWAL IN SANITATION IN BRAZILIAN SEMI-ARID AREA

Artigo publicado na revista Sustainable Water Resources Management (SWAM). Teixeira, T.C.S., Veiga, K.d.S., de Souza, F.P. et al. Charging for water withdrawal in sanitation in Brazilian semi-arid area. \textit{Sustain. Water Resour. Manag.} 7, 76 (2021). https://doi.org/10.1007/s40899-021-00555-3

ABSTRACT

To achieve optimal rationality and efficient freshwater use, the latest Brazilian methods for charging payments based on water withdrawal generates a criteria of good practices in water use. The São Francisco River Basin (SFRB), mainly located in the Brazilian semi-arid area, included such parameters in 2019 modifying 2010 procedures. This study comparatively evaluates these procedural changes, taking the water distribution user sector as the subject of the investigation. Results indicate that the measurement parameters, which adjusted priced water volume, stimulated an overestimated water license to receive a 24% payment bonus. Furthermore, the inclusion of a water loss index is based on weak parameters, which allow up to 50% of water loss without penalty. In the three water systems observed, the cumulative effect of the measurement and water loss criteria imply a reduction of almost 40% water charges since 2019. Thus, the procedures adopted in the SFRB, a region with structural water scarcity, are not consistent with their initial objective of rational and efficient water use.

Dra. Telma C. S. Teixeira - Líder do grupo RHIOS
Bl. Karine dos S. Veiga - RHIOS,
Dr. Frank Pavan de Souza - RHIOS, ISECENSA
Dr. Claudiano C. Cruz Neto - RHIOS, UFRB
Bl. Gleice de S. Aguiar - RHIOS,

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Karine Veiga, Gleice Aguiar, Frank Pavan de Souza, Claudiano C. Cruz Neto,Telma Teixeira