27 September 2013: The European Environment Agency (EEA) has published a technical report, titled ‘Assessment of Cost Recovery through Water Pricing,’ which finds that, while implementation of cost recovery in water systems across Europe vary, when applied, recovering costs is highly effective in managing residential water demand. Cost recovery is required under the Water Framework Directive (WFD).

The report includes chapters on: the current institutional and regulatory frameworks of water pricing in the EU; current water pricing frameworks in selected EU member States; governance; performance of current water pricing, evidence from selected EU member States; and moving the water pricing agenda ahead.

The report identifies as obstacles to cost-recovery water pricing: lack of metering infrastructure; resistance of stakeholders and users to water price increases; disparity in local prices; and subsidies. Among other findings, the report notes that agricultural water use is heavily subsidized, in Mediterranean countries in particular, and often subjected to flat rate systems, which do not provide incentives for efficient water use. [Publication: Assessment of Cost Recovery through Water Pricing] [EEA Press Release]