case study: prepaid water meter pilot project in the ...park hyatt, dubai, uae speaker’s name...
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Addressing smart water metering for the Middle Eastern water utility of the future
25 October 2011Park Hyatt, Dubai, UAE
Speaker’s namePositionCompanyCountry
www.smartenergyme.com
25 October 2011
Case study: Prepaid Water Meter pilot project in the Palestinian Water Sector
Fayez AbuHilou, MS.c Eng.Project Manager
Palestinian Water Authority / Projects Management UnitPalestine
Water as life foundation
Water as a Human Right
Free Basic Services for All
Population increase
Pollution
Climatic Change
Water as an „Economic Good‟
„Responsible Customer - Citizen‟
Water Supply Management Water Demand Management„ Cost Recovery ‟
Water metering
PWM
Facts
• Palestinian Council of Ministers decision No.13/51/03 dated 16 June 2010.
• Palestinian Water Authority (PWA) approval regarding the 5000 PWM
import for the JWSC, dated 20 June 2010.
And
• Article No. [3] in the Palestinian Water Law No. [3] for the year 2002.
• Articles No. [122 and 106] from the Civil Procedure and the Palestinian
Trade Law No. [2] for the year 2001.
• Consumer Protection Association declared its refusal and rejection on all
levels to use PWM, with some NGOs support ( Palestinian Hydrology
Group PHG).
Facts
The works does not aim to support nor
strengthening resistance to the logic of PWM.
Scope and Limitation
The research is particularly important as the logic of
the prepaid system seems already to have been
accepted by the Government and water service
providers.
The people response to such questions may have been affected (oriented) by
the fact that its PWA assessment.
The effect of the PWM on the socio- economic aspects doesn‟t seem to be
identical crossing the entire study samples.
Case Study Background
Climate classification of the WB (LRC, 2007).
Non-equitable and
Non-reasonable
share of water recourses
•Inefficient Management,
•high % of non-payment and UFW
+ + More challenging
The Institutional Arrangement;
PWA
Relevant Line
Ministries
(i.e. MOA, MOLG)JWC
NWC
WBWD
Wells
PWA
Wells
Municipal Wells
and Springs
Private
Agricultural
Wells
JWU, WSSA, Municipalities,
Village Council Water Departments,
and Joint Service Councils
Mekorot
AgriculturalDomestic IndustrialConsumption
Operation
&
Distribution
Supply
Policy, Planning,
Development &
Regulation
Palestinian SystemIsraeli System
NWC: National Water Council.
JWC: Israeli Palestinian Joint Water
Committee.
PWA: Palestinian Water Authority.
WBWD: West Bank Water Department.
MOA: Ministry of Agriculture
MOLG: Ministry of local government.
Consequence to the late Oslo II agreement and follows the Palestinian Water Law No. [3] for year 2002.
Existing Institutional Arrangement of Water Sector; in the West Bank (PWA, 2008).
1. Alyamoun
2. Silit AlHarthiyyah
3. Al-Tyabah,
4. Al-Hashimiyyah,
5. Kufr Dan,
6. Kufr Qud,
7. Ittnnik ,
8. Zbobah,
9. Romanah,
10. Aneen
11. Araqa
Case Study (JWSC)
• Since the development in the United Kingdom, the use of these meters
have spread through countries like Brazil, Egypt, Uganda, Curacao,
Nigeria, Tanzania, Swaziland, Sudan, Malawi, Namibia, Namibia and
South Africa.
• Extreme example of applying full cost recovery directly to the household
level irrespective of income and ability to pay, making it easier to manage
and budget.
• PWM is special electronic water meter that controls setting a water quota
based on prior payments with the facility of automatic cutting-off supply
when the available credit is not enough ...
• The exception that PWM has a special digital box and keyboard assigned
to control the water bill in advance, with card port to charge through.
Prepaid Water Meters (PWM) - Prepayment or Smart Water Meters
• Create greater awareness for water use.
• Facilitates Cost-recovery and accelerates private sector participation.
• Defeat the so-called „Unwillingness to Pay for Services‟ , improving „Cash flow‟ with 100% revenue, eliminating the risk of late or non-payment of water services.
• Debt is never able to be incurred with the opportunity to be programmed for previous debt rescheduling
• Aims to save customer‟s and providers time and money ;
- They do not have to interact directly as before,
- Can be charged in local kiosks or supermarkets in each location
- Alert of any water leak in house plumbing,
- Prevent them from paying huge bills or even monthly minimum charge
• With the “life line” and flexible programming system, it is liable to maintain specific minimumwater flow to some cases to avoid any conflicts with human rights.
• All customers‟ data will be available on the card and easily followed showing any kind oftechnical problems and warn for attempts to tamper the meter with the possibility to replace foranother card by the customer relation center
The support and approval direction
• The PWM accused as starkest expression of commitment to the profit motive above the
needs of people,
• The fear to run out of water, when no credit is available,
• The fear that PWM does not understand emergencies,
• Affects negatively on the social and environmental conditions in communities, may urges
to water theft and illegal connections. In addition, the social relations in communities may
erode when families run out of water.
• Poor families are forced to decrease their consumption of water, use untreated water,
• Difficult trade-offs between water or food, medicine, school fees, transportation and other
essential goods and services, and possibly will expose the most vulnerable people to
preventable diseases and death.
• Escalates the cost of providing health services and unnecessarily burdens the health
sector, due to increase rates of water-borne diseases resulting of using untreated water
from other sources .
• PWM may not affect the rich and privileged awareness to the importance of
rationalization of water consumption, they are able to consume as much as they please.
The opposition direction
The opposition to PWM based on the statements; ‘Water as a Human Right’
and ‘Meeting Basic Need with Free Basic Services for All’.
• The UKs 1998 Water Act declared prepayment meters to represents a threat
to public health and water cutoffs to be an unacceptable method of
recovering outstanding debt .
• In Madlebe, a rural area in South Africa, a system was implemented,
Between 2000-2002, many people could not afford clean water and
massive cholera outbreak resulted in 259 deaths.
• In the case of Orange Farm Township south of Johannesburg, South Africa,
in 2003 the Anti-Privatization Forum together with some organizations and
individuals came together in the coalition against water privatization to
form what is called „Against Prepaid Water Meter‟ alliance, and in 2008,
the High Court of Johannesburg declared them illegal.
The Opposition Direction
• Deal with a number of collective processes involving;
Wide set of meeting and interviews with stakeholders.
Household and customers interviews (based on questionnaire).
The feedback also comes from the water provider utility ( JWSC).
• The intended assessment aimed to cover basic questions,
Brief socio-economic conditions,
Several inquiries regarding the following; the basic water need, demand and
supply before and after introducing this technology, the problems, attitude,
fear, knowledge about the PWM and people trust in the water utilities. as well
as a number of technical aspects regarding the use of PWM in the Palestinian
Water Sector.
METHODOLGY
• The general profile of respondents and households in the study area comes asreflection to rural area and low to medium income society.
o 88% is living in separate owned houses, on an average of three rooms per house
o 98% of connection to public electricity network..
o The educational attainment for both genders shows a 0.3% of illiterate,
o 58% of school level and 30% of university level.
RESULTS AND DISCUSSION
In the subject of water use:
• The fact that almost 80% are connected to the public water network,
• Dependent on the network water only during the summer period and in such a case
(villages and rural area), where the water accessibility and life style reflects the
nature of water use, the residential (Household) use comes first.
• Agriculture and farming water use does not necessary depends on water from the
network (subject of our study), since wells, rain water collection systems and water
tanks are observed as a major water resource in the study area.
RESULTS AND DISCUSSION
Concerning the PWM first use
• The people at the beginning did not have any contribution, neither did they have
any prior information.
• It is a fact that PWM installed with absent of any pre-construction information
coverage and without consulting the stakeholders.
• Records show one primary pre-construction meeting held in the PWA offices in
Ramallah, with the presence of academic and water researchers to discuss the
PWM concept.
• The PWA with the collaboration with MOLG and the Palestinian Standards
Institution (PSI) started to prepare the special Palestinian PWM Metrological
and Technical requirements. This work is referring to the International
Recommendation OIML R 49-1.
RESULTS AND DISCUSSION
• It was clear that tell this moment, their where no real objection from the peoplein the study area for the use of PWM.
• A percentage of 28% shows highly acceptance for replacing the old situation,while 51%, found to be in opposition to PWM use.
• It was found that the people now do not complain about the water shortage asthey did before, instead a 47% criticized the operational and charging process.
• A percentage of 62% of the sample did not identify or recognize any change intheir water use.
• 40% did not know the water tariff they have been charged with.
• There were no clear trend between the people position and the income .
RESULTS AND DISCUSSION
28 %
51 %
-- The effect here is dominant to the customers earlier water service situation.
-- People who used to get water for free (didn‟t pay for long time) and living in the low-lying
areas used to fill their tanks and wells from the water network leaving the people living in the
upland areas with no water for long time.
• It was clear through the interview with the provider representative at JWSC that they are not
considering any kind of role for the customers in the decision of installing PWM, as an easy
way to solve their financial crisis.
• The finance indicators clearly show with no doubts that the use of PWM will:
RESULTS AND DISCUSSION
Increase the profits,
Decrease the expenditure as both time and money saved.
High percentage of bill payment will be achieved excluding some exceptions that remain
on the old system; governmental institutions, schools and mosques etc..
In addition, a 20% of any PWM charge deducted to cover earlier debt as compulsory
scheduling system.
PWM sold as a high-tech solution and come at a higher price (US$150) compared to the
mechanical water meter. ( 1 to 4 NIS/ month to cover entail cost)
The installation requirements for the PWM are more precaution; PWM should not be
located in dusty and dirty areas, and have to be protected from direct sunlight and rain.
• CONCLUSTION
PWM brings an enormous debate;
• As policies of „Cost Recovery‟ have been extended, the idea of PWM was not an easy, there are no long-
term experiences available in Palestine with this concept, and best practice for the use of PWM yet to be
agreed on, where number of dependent and independent Socio-economic aspects involves heavily with any
intrusion and interference within the water supply system.
• The issue of using PWM subjected to many prospective views, and is yet to be tested before a competent
court to separate and rule between the opponent groups, taking into account the existing laws. Therefore, it
is crucial to implement a non-knows new metering concept without having convincing data, along with the
lake of technical specification for the PWM.
• In our case, using the PWM does not necessary involve the people approval nor imply their agreement, in
this mater, a direct feedback must be obtained from the individual consumers regarding the acceptance and
approval to replace the monthly bill system.
• The authorities are obliges to:
Create a system with clear regulatory legislative framework
Along with monitoring institution that define and record all casesthat deserves financial support and subsidies,.
Compatible with the recommendations of the Palestinian Council ofMinisters decision
Along with the „Water Sector Reform Plan‟ that is being preparedfor nowadays.
CONCLUSTION AND RECOMMENDATION
Free minimum ‘life line’ of household water
supply commensurate with requirements of health,
hygiene and culture should be taken into
consideration to protect the interest of poor family
Emergency Water frequency and amount
Free Basic Water Cost Recovery
Efficient Management
• CONCLUSTION AND RECOMMENDATION
More work is needed
Results from this study cannot be used to make statistical estimates about the wider
community in the Palestine (only cover Jenin districts villages)
The opposition of the consumers in the study area may not be clear, because of the previous
water supply condition influence and to the demographical and socio-economic level of the
inhabitance in the study area.
There is a need for neutral parties‟ involvement; NGOs, Universities and research centers.
Due to the limitation of time, as well as the short time of using the PWM, it‟s highly
recommended to continue this study, to expand the survey including all the cases in the
Palestinian society, to work on the cost benefit analysis and the management scheme needed ,
after organizing the situation and reaching a regular operation and finance scheme of this
PWM pilot project.