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Public services provide cheaper water

Public services provide cheaper water

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Uploaded 16 Feb 2012 by GRID-Arendal
Year: 2009
From collection: Vital Water Graphics 2
Author: GRID-Arendal
Description:
By bringing water to people water resellers extend the coverage of piped water and provide a service with important benefits for households - but at a price. That price rises with distance from the utility, as defined by the number of intermediaries between the network and the end consumer. Having a regular supply of clean water piped into the household is the optimal type of provision for human development. Experience suggests that households with water delivered through one tap on a plot (or within 100 metres) typically use about 50 litres of water a day, rising to 100 litres or more for households with multiple taps. Household connections to a utility offer financial benefits. In unit price terms, utility water is by far the lowest cost option. Because of economies of scale once the network is in place, the marginal cost of delivering each additional unit of water falls sharply. Subsidies are another important price-reducing mechanism: utilities are usually the gatekeeper for ...
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