by Michael Smith (Veshengro)
The sustainable management of water must reflect fully the value of water, not just for people but also for the environment and the ecosystem services it provides. The Chartered Institution of Water and Environmental Management, CIWEM, believes that the price paid for water needs to reflect environmental realities with sufficient political will to price externalities effectively.
In the UK water has traditionally been regarded as a free resource and not one with an inherent value of its own. CIWEM’s new publication, Regulation for a Sustainable Water Industry, calls for the Government to develop and mandate a “shadow price for water”. This needs to include the true environmental costs of water and should be reflected in abstraction license charges. There should also be a move to charge this to customers following consultation and subject to the provision of appropriate protection for vulnerable sectors of society.
CIWEM considers the marginal price of water for domestic use above a socially agreed threshold should be set to recover the cost of its delivery and environmental impact. To do so requires near-universal metering of households and the adoption of rising block or other “smart” tariff regimes. The Institution advocates the early delivery of both.
The challenge will be in setting a price that balances consumptive and environmental use, but with the extra revenue going towards managing the environment. The proceeds would be used to compensate for loss of water rights and the replacement cost of less damaging water rights and assets. The development of a shadow price would also help to raise the value of new innovative products.
CIWEM considers that both regulatory and market mechanisms have a role to play in achieving the delivery of water, sewerage and environmental services. Shadow prices are already used for carbon and would help as one of a number of measures to deliver a more sustainable water industry.
Chair of CIWEM’s Water Panel, Dr Colin Fenn says: “We believe that the full value of water needs to be established, communicated to and accepted by customers as soon as possible, to support the introduction of market-based instruments. Until the true value of water is established and communicated, demand management measures will continue to be under-valued and under-utilised.”
CIWEM believes that reform of the industry may best be tackled by mixed economy solutions involving government interventions, the co-ordination of action by public bodies, the development of appropriate incentives for private firms and household customers and the promotion of awareness and attitudinal change on the scarcity and value of water across the whole of society. CIWEM calls for a wide-reaching review of the governance of the water industry to ensure that our use of water is sustainable and respects environmental limits.
One of the things that we must overcome and get rid off is the water mining for putting the stuff into bottles, whether plastic or other, to be sold to the public as a better and healthier alternative to the British tap water.
The tap water, predominately, in Britain is absolute fine without there being the slightest bit wrong with it and if you don't like the taste because a little too much chlorine or limestone in the water then use a filter of sorts. Works and the water tastes much better than bottled and is better for the environment, and, more than likely, also for you.
© 2010
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