Demystifying the pre-paid water myth
“WATER is my right, it is not a privilege”. This has been an argument put forward by most urban dwellers and water rights activists when tackling the controversial issue of prepaid water meters. Zimbabwe has not been left out from this debate, with a number of local authorities pushing for the establishment of the prepaid water meter facility much to the chagrin of most residents and water rights activists.
A lot of viewpoints have been forwarded regarding this issue with most residents expressing concern towards the implementation of the facility with most raising the argument of water being a basic human right.
However, on the other hand local authorities and the Government have noted that introducing pre-paid meters was the direction that the cities across the globe were taking in order to improve the payment of rates and services which subsequently impact positively on service delivery.
As this argument continues councils and water rights activists continue to be at discord with each other Sunday News this week took the liberty to take an in-depth look at all the arguments brought forward with the aim of demystifying the myth surrounding these meters.
On average, cities and towns in Africa are growing at five percent per annum — faster than anywhere else in the world. Water service providers face considerable challenges to meet this growing demand, and most lack the resources to do so. The revenue flows of most of these countries also fall far short of requirements to fund investments and run services effectively for these rapidly growing populations.
Meeting the demand, especially in the rapidly expanding unserved poor settlements, requires new thinking and innovation. This is one reason why there has been a surge in interest among subSaharan African water service providers in prepaid water systems.
Their track record so far has been mixed. Some have not been able to sustain these systems, but others are delivering results that are sufficiently promising to mitigate potential risks. Prepaid water r ema i n s controversial, however. Proponents see it as a way to improve customer relations, revenue, and access to services. On the other hand critics complain about technical unreliability, high capital and maintenance costs, and a system they see as penalising poor customers.
Perhaps at this stage it is essential to note that prepaid water is ultimately a technology: it is not intrinsically pro or anti-poor, and it is not a substitute for sound management. In defining prepaid water meters, Chris Heymans in a study titled; The Limits and Possibilities of Prepaid Water in Urban Africa: Lessons from the Field notes that prepaid water systems are not a technical magical wand to fix underlying management issues in the delivery of urban water supply.
He, however, notes that a service provider that falls short on effective management, governance, and sound customer relations is likely to take on far more than it can deal with by resorting to prepaid systems.
“The benefits of prepaid meters must be balanced with an understanding of the likely increased costsdue to significantly increased capital expenditure on metering devices; recurrent costs such as the cost of vending and ongoing repairs and monitoring; selling more water at subsidised lifeline tariffs rather than full tariffs.
“The resulting challenge to utility finances has to be planned for, both for an appropriate level of crosssubsidies within the customer base and, quite likely, for subsidies supported by taxation from a wider revenue base. Service providers would be well-advised to assess the cost and revenue effects of introducing prepaid meters carefully,” Heymans is quoted as saying in his study.
He further notes that when the utility chooses prepayment as a vehicle for delivering water directly to low-income households at a social tariff, it may also be necessary to consult economic regulators or higherlevel decision-makers upfront about how best to recover the costs of this approach. “For service providers, prepaid systems are a means to meet more customers’ service demands, an incentive to extend services to poor people in areas where previously they had no re venue prospects, and a means to improv e r e v enu e collection. This offers the prospect of healthier cash flows, more revenue to fund expansion, and more resources to help weather the prevailing reluctance to increase tariffs at all.
“Cost-effectiveness of prepayment varies significantly across applications. Better collection from large-volume consumers can improve revenue to help subsidise services in low-income areas. But revenue income will meet or exceed prepayment costs only at comparatively high consumption volumes, and the volume of sales required will be determined largely by how cost-reflective the tariff is,” added Heymans.
Commenting on the installation of prepaid water meters by local authorities in the country, Local Government, Public Works and National Housing Minister, Cde Saviour Kasukuwere noted that the trend was spreading worldwide.
“Prepaid meters are the way to go, most people have two cellphones which are prepaid and so people should be able to use the same system on water, besides it is happening worldwide, why can’t it happen in Zimbabwe,” said Cde Kasukuwere.
In an interview with Sunday News on the sidelines of the Matabeleland South Agricultural Show last week Synlak (Private) Limited managing director Mr Moses Mpofu also weighed in on the debate noting that most people were misinformed when it came to the issue of prepaid water meters.
Synlak is installing prepaid water meters in Harare, Gwanda, Kariba and Kwekwe. Mr Mpofu said after engaging residents they were now keen to adopt the system as they were convenient.
“What we realised is that in most cases it was these so-called residents associations which were misinforming people, it was these few individuals who lead these associations who will then go and reject the prepaid water meters purporting to be representing people’s views.
“However, the truth of the matter is that prepaid water meters are more convenient than what most people think. They help one plan how they use their water and control their bills. To those who think that when your money runs out, water is cut abruptly this is not true, what happens is that there is a credit facility which allows you to continue having water until you manage to recharge,” said Mr Mpofu.
He said after engaging residents, in all the urban areas they were installing the pre-paid water meters, the waiting lists were growing with more people approaching their various local authorities requesting that the meters be installed in their homes and businesses.
“I think it’s all about people getting the right information for them to appreciate the importance and convenience that these meters have,” said Mr Mpofu.
Bulawayo City Council spokesperson Mrs Nesisa Mpofu also noted that as a local authority although they had faced a bit of resistance when the idea of prepaid water meters was first mooted they had, however, continued consulting. “The idea behind the use of water prepaid meters was researched under the Water Demand Management Business Proposal and also under the City of Bulawayo Water and Waste Water Master Plans. Some of the advantages that were noted in this study to the consumer include that; it puts residents in control of their own budget, there won’t be any surprises caused by high water accounts or bills and further the system ensures that leaks do not go undetected for too long,” said Mrs Mpofu.
She said there would be less administration and the savings costs associated with prepaid water meters help to keep prices affordable.
“Most people believe that when we roll out these prepaid water meters they won’t get the 5 000 litres per month free water, which is not really true, in actual fact they will continue getting their free basic water,” she said.
However, programme co-ordinator for the Bulawayo Progressive Residents Association, Mr Rodrick Fayayo said the prepaid water facility needed further scrutiny rather than rushing to forcing it on residents.
“Our argument regarding these prepaid water meters is two-fold, firstly; from a socio-economic perspective where you find that in Bulawayo industries are closing and people just do not have money, then you go on to want to force these prepaid water meters, where do you think they will get the money?
“Secondly, when you look at the Bulawayo City Council, they simply do not have the capacity to install these meters, let alone service them. They are even struggling to address burst sewers then you expect them to be able to maintain these meters. Our fear is that what will happen is something similar to Kwazulu Natal in South Africa where these prepaid water meters broke down in just one section and due to the local authority’s failure to repair them, it spread right across the province,” said Mr Fayayo.
He said it was not for councils to force these meters on residents but more consultations were required.
So as the debate surrounding prepaid water meter continues the ball is now with the local authorities and the contracted companies to engage residents on the advantages of these systems both for the residents and the respective local authorities.