Water European Water Pricing Limits Efficient Use, Study Says

The pricing policy of water in many European countries could actually limit the efficient use of this ressource, a new EEA study says. Flat-fee water charges, that are still common in parts of Europe, do not encourage efficient behaviour in households, agriculture or industry, the report states...

Now the European Environment Agency (EEA) calls for policy maker introduce a pricing policy that both encourages efficient use and properly reflects the cost connected to purifying and transporting the water. In addition, environmental and resource costs of water use, such as pollution and the depletion of resources, should also be internalised into water prices, the report says. Such charges should factor in lost 'ecosystem services' which also require water, for example wetlands carry out valuable services such as water purification and flood prevention.

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