A/HRC/30/39
carrying out a study using a range of different tariff and subsidy systems to determine how
affordability can best be assured.2
10.
Discussions on affordability often focus on tariffs in the context of networked
supply. While there are important challenges, this ignores that many people living in
disadvantaged areas and within marginalized communities do not benefit from public
networks, but rely on on-site or communal, often informal, sanitation and water solutions. It
has been estimated that up to 25 per cent of the urban population of Latin America and
almost 50 per cent of the urban population in Africa relies on small-scale informal
providers to some extent.3
11.
In many instances, these communities pay high prices for low-quality services –
adding another layer of complexity to discussions on affordability. As informal service
providers by definition tend not to be regulated for quality or affordability, they charge
prices determined by what the market will bear or by price-fixing between providers
(including cartel-like structures). For people in disadvantaged communities, paying for
formal service provision is often a welcome opportunity to have a more regular and betterquality service, often at a lower price. These dimensions need to move centre stage in the
discussion on finding solutions for ensuring affordable service provision for all.
12.
Against this background, the present report presents an overview of the various costs
that individuals and households must pay for water, sanitation and hygiene. It seeks to
define affordability from the perspective of human rights and discusses the importance of
setting concrete standards to determine affordability. It puts affordability in the broader
context of ensuring environmental and economic sustainability, and discusses the impact of
disconnections as a result of inability to pay. The report discusses who benefits from public
financing in current practice, and then considers a variety of different mechanisms to ensure
affordability of services for all through public financing and devising appropriate tariff
schemes, including their advantages and challenges. Finally, the report discusses the
importance of regulating and monitoring affordability before providing conclusions and
recommendations.
II. Costs associated with water, sanitation and hygiene
13.
This section considers the various costs associated with water, sanitation and
hygiene, not only direct costs, but also time costs, as well as the additional burdens that
corrupt practices and inadequate governance may cause. It concludes by considering the
costs of inaction.
A.
Different types of costs
14.
In order to assess and ensure affordability, States need to look into the overall cost
of delivering service that can have implications to the user’s payments. These include not
only those regularly occurring costs such as operation and maintenance, but also the entire
“life-cycle” costs of services, which include construction and rehabilitation (where
2
3
Ministry of Ecology, Sustainable Development and Energy – France, “Expert group on equitable
access to water and sanitation”, 2015, available from
http://www.unece.org/fileadmin/DAM/env/documents/2015/WAT/05May_1112_Paris/Meunier_FranceMEDD_ExperimentationSocialTariffs.pdf.
Laura Sima and Menachem Elimelech, “The informal small-scale water services in developing
countries”, in Water and sanitation-related diseases and the environment: Challenges, interventions,
and preventive measures, Janine M. H. Selendy (ed.) (Wiley-Blackwell, 2011), p. 231.
5
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