Why do water prices vary globally

Question 1

Costs of obtaining supply/transporting

Answer 1

In the UK the average cost of a litre of tap water is 0.01p or 5p for 50 litres and 99% of households have mains water piped directly to their homes (some people do not have mains water from choice)

Question 2

Investment infrastructure

Answer 2

In Ghana, only 41% have access to a safely managed water source, while only 18% have access to very basic sanitation

Question 3

Demand

Answer 3

Whilst the cost in UK£ may not appear much, for many Ghanaians, it represents 20-25% of their daily income and for the very poor, unaffordable

Question 4

Government policies

Answer 4

Taxes/ tariffs

Question 5

Privatisation

Answer 5

Many private companies have share holders to answer to, and profits are a requirement for future investments

In some countries there is only one water company, which amounts to a monopoly on supplying water, and therefore, can charge what they want - a profit over people approach

Question 6

Lack of piped water supply

Answer 6

Increases the cost of supply/transporting

Question 7

The water poverty index (WPI)

Answer 7

Score out of 100

1. Access
2. Capacity
3. Use
4. Environment
5. Resources

Developing countries are normally lower than developed countries