Social Impact Analysis of Tariff Reform in the WSS Sector

Description of the activity

This activity analyzed the share of water utility spending in total household income under existing tariff regime and applied common rules to understand affordability constraints. This was carried out for all ECA countries with available household expenditure data. For two countries, notably Albania and Belarus, a more comprehensive technical assistance in the design of efficient and affordable tariffs will be carried out. Analyze social impact of tariff increases and design of mechanisms to address adverse welfare effects

Implementation of the activity

Affordability shares have been computed for all countries under the DWP, as displayed within the State of the Sector report. More comprehensive analysis on the impact of tariff reform on affordability by lower income groups is being carried out in Albania and Belarus (outside of DWP). These two analyses are financed from different sources, but lessons may be learned for countries within the Danube watershed.