The impact of prepaid water meters on urban clients and utility’s outcomes:the case of Iringa municipality
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Date
2023
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
The University of Dodoma
Abstract
Water is the essence to life, economy and environment as all human activities depend on it. Among 17 Sustainable Development Goals (SDGs), SDG 6 aims to “ensure availability and sustainable management of water and sanitation for all”. As African cities’ population grows at 4.1 percent annually, water utilities are facing economic water scarcity, brought about financial, technology and human capacities for managing water. The prevailing revenue flows of most utilities fall far beyond the requirements to fund investments and run services effectively to meet rapidly growing demand. While considering postpaid water meters as remedy, the technology is mostly subjected to billing inaccuracy, payment delays, higher operational cost among others. This calls for prepaid water metering system (PPWMs) on most of sub-Saharan African utilities. Therefore, this study employed fixed-effects panel data analysis technique through event study difference-in-difference design to explore the causal-effects of PPWMs on water utility’s revenue collections, efficiency and client’s consumption compare to postpaid meters in urban areas. This study employed secondary data form Iringa Urban Water Supply and Sanitation Authority (IRUWASA) covering a sample of 12,552remained postpaid and 757 shifted to prepaid water client accounts observed from 2014 to 2020 throughout on monthly basis. In general, the findings revealed a significant increase on revenue collections and collection efficiency brought about PPWMs, compare to postpaid, while utility benefit most from Domestic clients. Moreover, on the site of consumers, generally there is no consistent significant change on water consumption till after a long exposure to PPWMs which experience a reduction but on industrial clients there is a significant reduction on consumption. Although prepaid water metering can potentially improve the quality of water service provision, much improvement can be realized if financial options are well invested and are supporting such technological interventions.
Description
Dissertation (MA Economics)
Keywords
prepaid water meters, urban clients, utility’s outcomes, water meters, sustainable management of water
Citation
Rugaimbila, T. T., (2023). The impact of prepaid water meters on urban clients and utility’s outcomes:the case of Iringa municipality, (Master's Dissertation). The University of Dodoma