Analysing the Diversity of Water Pricing Structures: The Case of France

This paper presents the results of a 2003 national survey of urban water pricing structure implemented by 429 district level water utilities. After providing some background elements on the diversity of existing water pricing structures, the paper shows how each structure can be used to achieve different management objectives (water allocation efficiency, costs recovery, and equity). It then describes the structures adopted by French water utilities, showing that flat rate are rarely adopted; declining blocks frequently used; and increasing blocks pricing which should be used to promote water use efficiency remain extremely rare. A statistical clustering is then conducted and a typology of situations elaborated. The paper concludes with highlighting that current pricing structures are influenced by past practices and that the dominant objective of water utilities is to cover costs.