A/HRC/30/39
(d)
In most countries where subsidies are applied through tariff systems, these
are only available to people connected to networks, thus excluding those who rely on
kiosks, standpipes or public toilets;
(e)
Often, due to an increasing block tariff structure, consumption subsidies do
not benefit large families or multiple households sharing one water connection;
(f)
Public financing is available only to those who have secure land tenure, thus
excluding those living outside the formal legal system;
(g)
practices;
Those who are responsible for allocating public funding engage in corrupt
(h)
Those who are connected to water supply services but not to sewerage
networks are often disadvantaged by cross-subsidies between water and sanitation services.
This subsidy results in persons who have a water connection but no sewerage connection
subsidizing better-off people or households that have such a connection;
(i)
In many instances, subsidies for water are targeted towards commercial or
industrial users. Where such subsidies benefit users that do not actually rely on them for
their livelihoods, they should be eliminated or reduced to free up resources for the benefit
of the population in need.
55.
In all cases, it is critical that any sort of public financing is transparent, clearly
explained and widely promoted to ensure that those entitled to it receive it, to reduce the
scope of corruption, and to analyse whether the mechanism has been effective.
D.
Subsidies based on income, geographic location and types of access
56.
In different contexts, different mechanisms have been used with the aim of targeting
financial support at those individuals and groups who rely on it to ensure the affordability
of services. Subsidies could apply to low-income households, to areas populated
predominantly by low-income communities, or to small-scale services likely to be used by
those living in poverty or on a low-income.
57.
Targeted subsidies can be provided at the household level based on income. In many
cultures, however, there is significant stigma attached to the receipt of subsidies, in
particular where the application for the subsidy becomes publicly known. In a country in
Africa, for example, there are subsidies available for a range of social services, but many
people choose not to register even where they are eligible reportedly due to the stigma
attached. One way to overcome such stigmatization would be to adopt ways of distributing
subsidies that do not publicly expose people. Beyond this, however, broader cultural
changes are needed in the perception of subsidies to overcome the often internalized shame
and stigma of relying on public subsidies.
58.
Targeting schemes that are based on levels of household income or expenditure may
be costly, requiring administratively labour-intensive surveys to assess who is eligible,
except when this is available information for other administrative needs such as taxes.
Targeting is especially difficult where there is a large informal economy. More generally,
such targeting is often imprecise. Even sophisticated social security systems can exclude
significant numbers of the poorest residents, particularly those living in rural areas, where it
may be difficult to keep people informed of their entitlements.
59.
In some cases, household income or expenditure data is not available. In such cases,
other indicators such as the type of access (for example, whether a small-scale facility is
used), property value, size of the residence or geographical location can be used to evaluate
the economic capacity of users.
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