Water Seminar II: Less is More

Transcription

1 Presented at Water Seminar II: Less is More Organized by Civic Exchange Frederick Lee Department of Geography The University of Hong Kong 30 July 2013

2 Sources - International Water Association/ World Bank + - Water Services Department + Comparability - methodology highly localized - temporal variations Measuring units - litre/ cubic metre (m 3 ) - US$/ HK$ (nominal) Full references: available upon request

3 Benchmark Actual World Bank Pacific countries Global average England average Europe (3/4 of 49 utilities) Southeast Asia average (40 utilities) Pacific countries average (23 utilities) Hong Kong (domestic) Hong Kong (trade) Hong Kong (construction) Hong Kong (local shipping) Hong Kong (non-local shipping) Cost recovery ratio (percent) a 120 b 105 c 160 d >100 f 140 e 92 g h 60 h 94 h 60 h 144 h Sources: a, c The World Bank benchmark and global average figures were taken from Berg, C. v.d., & Danilenko, A., (2010). The IBNET water supply and sanitation performance blue book. Washington D.C.: The World Bank. b, e, g The Pacific benchmark, Southeast Asia and Pacific countries average figures were taken from Pacific Water and Waste Association, (2013). Pacific Water and Wastewater Utilities Benchmarking Report Apia: Pacific Water and Waste Association. d The England figure was taken from The World Bank Group, (2013). Cost Recovery: Water. Retrieved from f The Europe figure was taken from European Benchmarking Co-operation, (2013). Learning from International Best Practices: 2012 Water & Wastewater Benchmark. Rijswijk: European Benchmarking Co-operation. h The Hong Kong figure was derived from water tariff rates provided in Water Supplies Department, (2013). Water and Sewage Tariff. Retrieved from wage_tariff/index.html

4 Hong Kong s water tariff structure: outdated - unchanged since 1995 Taxpayers subsidies to water users: substantial - HK$ billion 41.7 ( ) Subsidies: some are justified - most are not

5 Figure 1. GDP per capita and Drinking Water Charges, 2011 (consumption of 100 m 3 /year) GDP per capita (US$) Drinking water charges (US$/100 m 3 /year)

6 Figure 2. Comparison of Drinking Water Charges (International), 2011 (consumption of 100m 3 /year) Drinking water charges (US$/100 m 3 /year) Geneva/ $400 Sydney/ $277 London/ $225 Tokyo/ $194 Paris/ $159 New York/ $238 Hong Kong / $34

7 Table 1. Water Charges (Domestic) Domestic (non-flushing) The first 12 units The next 31 units The next 19 units The remainder Charging rate per unit* (HK$) Free $4.16 $6.45 $9.05 *One unit = one cubic metre Fact: HK s Water tariffs: unchanged since 1995

8 Figure 3. GDP per capita and Drinking Water Charges (2003, 2007 and 2011) (consumption of 100m 3 /year) Drinking water charges (US$/100 m 3 /year) London Singapore Sydney Hong Kong Tokyo Geneva

9 Figure 4. Drinking Water Charges and Water Consumption (2003, 2007 and 2011) (consumption of 200m 3 /year) Sydney Tokyo Geneva Hong Kong Singapore London

10 Figure 5. Comparison of Drinking Water Charges (Domestic), 2011 (consumption of 100m 3 /year) Beijing/ $47 Drinking water charges (US$/100 m 3 /year) Shenzhen/ $30 Shanghai/ $26 Guangzhou/ $21 Hong Kong / $34

11 Figure 6. Comparison of Drinking Water Charges (Domestic), HK HK Drinking water charges (US$/m 3 ) SZ BJ SH BJ SZ SH GZ GZ Year

12 Figure 7. Distribution of Average Household Monthly Water Charge 100% >$75 >$75 80% $51-$75 $51-$75 Percent 60% $26-$50 $26-$50 40% $1-$25 $1-$25 20% 0% $0 $ Financial year

13 Figure 8. Water Charges as Percentage of Average Household Expenditure 0.3 Hong Kong 0.8 Mainland China cities (average) Asian cities US &European cities China: Central government World Bank Percent

14 Hong Kong s water tariff structure: outdated - unchanged since 1995

15 Table 1. Water Charges (Domestic) Domestic (non-flushing) The first 12 units The next 31 units The next 19 units The remainder Charging rate per unit* (HK$) Free $4.16 $6.45 $9.05 *One unit = one cubic metre Fact: HK s Water tariffs: unchanged since 1995

16 Table 2. Water Charges (Other Uses) Purpose Flushing/ 4-month period - first 30 units - remainder Trade Construction Shipping (local) Shipping (non-local) *One unit = one cubic metre Charging rate per unit* (HK$) Free $4.58 $4.58 $7.11 $4.58 $10.93 Fact: HK s Water tariffs: unchanged since 1995

17 Figure 9. Cost Recovery Ratio (on a per m 3 basis) Average water production cost = HK$ 7.6/m 3 Full cost recovery 100 Domestic 60 Trade 60 Construction 94 Shipping (local) 60 Shipping (non-local) Percent

18 Figure 10. Cost Recovery Ratio (on an overall average basis) HK 34 Pacific countries 92 Europe 100 Southeast Asia 140 England 160 Global average Percent

19 Hong Kong s water tariff structure: outdated - unchanged since 1995 Taxpayers subsidies to water users: substantial - HK$ billion 41.7 ( )

20 Figure 11. Water Production Cost and Subsidy, = Water production cost HK$ billion = Subsidy Financial year

21 Figure 11. Water Production Cost and Subsidy, HK$ billion Financial year

22 Hong Kong s water tariff structure: outdated - unchanged since 1995 Taxpayers subsidies to water users: substantial - HK$ billion 41.7 ( ) Subsidies: some are justified - most are not

23 Table 1. Water Charges (Domestic) Domestic (non-flushing) The first 12 units The next 31 units The next 19 units The remainder Charging rate per unit* (HK$) Free $4.16 $6.45 $9.05 *One unit = one cubic metre

24 Figure 12. The Buying and Selling Rates of Water, by Water Bottling Companies 8,000 $7, ,000 6,000 Water rates (HK$/m 3 ) 5,000 4,000 3,000 2,000 1,000 $ Buying Selling

25 Implement: Users pay principle Execute: Water tariff reform Target: Full cost recovery

26 Figure 9. Cost Recovery Ratio (on a per m 3 basis) Average water production cost = HK$ 7.6/m 3 Full cost recovery 100 Domestic 60 Trade 60 Construction 94 Shipping (local) 60 Shipping (non-local) Percent

27 Figure 13. Water Production Cost and Water Tariff 8.0 Production cost and water tariff (HK$/ m 3 ) Production cost Water tariff Production cost Water tariff Financial year

28 Figure 12. The Buying and Selling Rates of Water, by Water Bottling Companies 8,000 $7, ,000 6,000 Water rates (HK$/m 3 ) 5,000 4,000 3,000 2,000 1,000 $7.60 $ Buying Selling

29 Implement: Users pay principle Execute: Water tariff reform Target: Full cost recovery