Pricing of water services in Finland and some other developed countries

In developed countries water pricing seems to have some controlling effect on water consumption. The income structure of water and sewage works in Finnish cities relies extensively on volume-based charges whereas the structure of rural municipal works is more versatile. For the last decade consumption charges have remained the same whereas effluent treatment charges have grown in real terms. The difference between the maximum and minimum volume based charges in Finland is about 20-fold for water and about 10-fold for sewage. Unlike other public services such as electricity and district heating the services of water supply and particularly the sewage works in Finland are underpriced. Some comparisons on water pricing in OECD-countries are presented. The paper is a preliminary step in the analysis of water pricing experiences in the developed countries and their implications for the developing world