In a hearing with the Water Sector Regulatory Council on the Water Tariff Regulation and Instructions 2021,
AMAN recommends that an implementation plan for water tariff be publicised in Palestine
Ramallah – The Coalition for Accountability and Integrity (AMAN) held a hearing on the Water Tariff Regulation and Instructions 2021 with the Water Sector Regulatory Council (WSRC). The session took place with the participation of representatives of relevant agencies, government bodies, civil society organisations, and media institutions.
In her opening statement, Ms. Hama Zeidan, Operations Manager at AMAN, thanked the WSRC for their cooperation and openness to the need for making information publicly available, particularly in relation to the provision of vital services, such as water supply. Zeidan highlighted that AMAN’s interest derives from its attention to Palestinian natural resources. In view of water scarcity and Israel’s control over water sources in Palestine, AMAN has consistently stressed the importance of natural resource management with utmost transparency. Zeidan welcomed the enactment and approval of the Consolidated Regulation on Water and Sanitation Tariff No. 4 of 2021, which lays out the calculation of water consumption prices (water tariff rate) and connection fees for water supply and sanitation services. Zeidan inquired when the regulation and instructions on the standard water and sanitation tariff rates would enter into effect after it had already been published in the Palestinian Official Gazette in January 2022.
The new Water Tariff Regulation will reduce the considerable variation in water prices
Emphasising its importance, Zeidan made clear that a new water tariff regulation that is approved by the Council of Ministers would play a role in reducing the significant variation in water prices across the territory controlled by the Palestinian National Authority. It will provide mechanisms for fee estimation by service providers and ensure justice for citizens to enjoy a fundamental right safeguarded by the Basic Law. Additionally, the Water Tariff Regulation will rationalise water consumption in Palestine, which is affected by water scarcity because of Israel’s control over this strategic resource. It will establish controls to ensure financial sustainability of water service providers and enhance the capability of cost coverage.
The new water tariff lays a unified and fair foundation for water tariff calculation and pays attention to vulnerable groups
Mr. Mohammed Humeidi, WSRC Director, asserted that the WSRC was an oversight body that sits on the fence between citizens and service providers. The new Water Tariff Regulation establishes a unified and fair benchmark for calculating the water tariff rate in Palestine. Unlike the previous one, the new regulation pays heed to vulnerable groups. However, water prices will continue to be variable and unstandardised due to the lack of a main water transmission line extending from northern Jenin to southern Hebron. Neither the Palestinian Water Authority nor the donor community have managed to install this line because the Israeli occupying authorities thwart any attempt for development and improvement in this sector.
Reasons for delayed implementation of water tariff instructions
According to Humeidi, in Palestine, water sources are varied, but scarce, because the Israeli occupying authorities seize control over 85 percent of these Palestinian-owned sources. Some water sources include local wells or springs. However, the Palestinian government is forced to purchase water from the Israeli Gihon and Mekorot water companies at a cost of ILS 5.5 and ILS 3.60 per cubic metre respectively. The government then sells water to service providers at ILS 1.60, while at the same time incurring all operating costs. Humeidi concluded that the Palestinian government pays some 50 percent in support of the water sector.
Variation in water prices
There is a significant variation in water prices. In some areas, a cubic metre of water amounts to ILS 11. In addition to large numbers of staff, some service providers pay some 40 percent of the cost for energy supplies as certain wells are so deep that they require high pumping power. In other areas, surface wells are operated by diesel- solar-powered pumps, reducing the water bill.
Water tariff for all service providers is audited
Humeidi added that the WSRC has the power to audit the water tariff for all service provers, including municipalities, village councils, water undertakings, water authorities, private sector firms, and community-based institutions. There are 300 and 250 water service providers in both the West Bank and the Gaza Strip, respectively. While the auditing process can take a long time, Humeidi indicated that priority is given to transforming qualified service providers into regional water undertakings. The transformation initiative will also include service providers who incur a loss of over 60 percent as well as those who apply to the WSRC to set the tariff. Humeidi explained that the water tariff will be audited for all service providers in Palestine on an incremental basis. Tariff adjustments does not necessarily mean an increate of the tariff rate. Adjustments may affect the brackets only.
The difference between water tariff and water price
Ms. Noura al-Jamal, Tarriff Expert at the WSRC, made a presentation on the Consolidated Regulation on Water and Sanitation Tariff No. 4 of 2021, stating that is premised on informed and approved standards to set the price of water and sanitation services for different uses. In principle, the regulation is based on real cost recovery. Al-Jamal explained the difference between water tariff and water prices. The former reflects the pricing of water supply provided to consumers by pipelines, transmission lines, and networks by service providers. In other words, water tariff entails the costs of water transmission, connection, treatment, purification, storage, and supply to the end consumer. It includes service management through the billing of network users. On the other hand, water prices generally refer to the price of bottled water and water and tanker-delivered water.
In her presentation, Al-Jamal explained that water was used for domestic, commercial, industrial, and tourism purposes. The method of water and sanitation tariff calculation is either fixed or variable. Cost calculation also varies depending on private maintenance, administrative costs, etc. Al-Jamal made clear that the Council of Ministers approved water and sanitation prices.
Participants in the hearing session unanimously agreed that water was a fundamental human right that was related to the right to life. The government is required to ensure fair water supply to citizens, particularly vulnerable groups. This service needs to be provided in a balanced manner, together with guarantees for sustainable and continued operations of water and sanitation service providers. Discussant stressed that the WSRC should publicise a clear and time-bound plan of action to apply the water tariff to all service providers, take expedited action to enforce the Water Tariff Regulation, and put in place mechanisms for ensuring equitable application of the regulation.
