Economic affordability and access to water and waste services (WWS) are extensively studied topics in economic literature. However, most papers focus on social rights or the importance of water provision for equity and development. The impact of different regulatory and/or management models, the measurement of affordability and efficient pricing have all deserved the attention of researchers, but few studies assess the actual revenue impact of the existing social support mechanisms. For Portugal, while some preliminary data collection has taken place, a comprehensive review is still lacking. With this paper, the Water and Waste Services Regulation Authority (ERSAR) takes a first step towards filling that gap, by calculating the amount of subsidisation inherent in the adoption of social tariffs in mainland Portugal municipalities. Starting with an account of the current status quo, the article analyses different subsidisation situations, including a hypothetical framework where social tariffs are administered according to ERSAR's guidelines. Results indicate that, if ERSAR's Recommendation were fully applied, the number of social tariff beneficiaries could be above current figures, possibly translating into a disproportionate burden on the remaining WWS users through the application of higher bills. In the context of the severe economic crisis that is forcing families into increasing budgetary constraints, the article stresses issues of feasibility, drawing on the policy implications of the adoption of such discounts.
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Research Article|
January 23 2014
Social tariffs for water and waste services in mainland Portugal: an impact analysis
Inês Gonçalves;
1Nova School of Business and Economics, Campus de Campolide 1099-032 Lisboa, Portugal
E-mail: [email protected]
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David Alves;
David Alves
2The Water and Waste Services Regulation Authority (ERSAR), Centro Empresarial Torres de Lisboa, Rua Tomás da Fonseca, Torre G – 8° 1600-209 Lisboa, Portugal
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Gisela Robalo
Gisela Robalo
2The Water and Waste Services Regulation Authority (ERSAR), Centro Empresarial Torres de Lisboa, Rua Tomás da Fonseca, Torre G – 8° 1600-209 Lisboa, Portugal
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Water Supply (2014) 14 (4): 513–521.
Article history
Received:
August 14 2013
Accepted:
January 08 2014
Citation
Inês Gonçalves, David Alves, Gisela Robalo; Social tariffs for water and waste services in mainland Portugal: an impact analysis. Water Supply 1 August 2014; 14 (4): 513–521. doi: https://doi.org/10.2166/ws.2014.002
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