A/66/255 welcome opportunity to have a more regular service and better quality water and sanitation. 24 20. There are several means by which households may contribute to improving access to water and sanitation. In cases of networked supply, discussions concerning tariffs are particularly important, as most water (and sewerage) utilities cover at least part of their costs through tariffs (i.e. direct payments by households for access to water and sanitation services). 25 Increasingly, utilities are ring-fenced, so that the funds raised from tariffs can only be used on the operation, maintenance and improvement or extension of access to water and sanitation services and cannot be utilized for other government purposes. Some governments also demand that the cost recovery principle be followed, at a minimum insofar as operation and maintenance costs, meaning that all costs related to operating and maintaining water (and in some cases, sanitation) services are paid for through tariffs. User fees however normally do not generate the level of revenue needed to invest in new projects or expand existing infrastructure.25 Where there is a cost recovery principle in place, it is crucial that the tariffs be structured such that those who cannot afford to pay cost price for the delivery of water (and sanitation) services are assisted through supplementary systems that ensure affordability. Therefore there is an inconsistency in that utilities are expected to deliver services on a commercial basis but at the same time provide an affordable public good. 21. Another form of household contribution in accessing formal water and sewerage services is the connection charges. These costs consist of payments to the utility for the cost of connection to the network (e.g. the physical costs of bringing the pipes to the household) and the cost of improvements within the household to enable such a connection (e.g. in-house pipes, water storage tanks etc.). These costs are often a significant barrier for those living in extreme poverty, with recent research suggesting that in Africa the average connection cost paid to utilities was US$ 185.50, and in Asia, US$ 168.90. Putting these numbers in context, connecting to the water system in, for example, Ghana requires about one year���s income. 26 Some countries have decided to reduce the barriers to accessing water and sanitation services by removing this charge for all or some households, or by incorporating some or all of the cost of extending the service into standard service charges. Arguably, expanding the customer base of the water utility has the potential to bring in more revenue than insisting on high connection charges. 27 22. Household contributions for water and sanitation services in rural areas and in informal settlements can differ quite substantially from household contributions for standard piped water and sewerage provision. In these cases, user costs can range from the construction of communal or individual household provision (a well, communal or household toilet), through the storage of water (buckets, jerry cans, tanks), treatment of water (boiling, chlorine, filters etc.), cleaning, maintenance, emptying of latrines or septic tanks, to the disposal of excreta. __________________ 24 25 26 27 8 UNDP, Human Development Report 2006: Beyond Scarcity — Power, Poverty and the Global Water Crisis (New York, 2006), pp. 52 and 53. Organization for Economic Cooperation and Development, Pricing Water Resources and Water and Sanitation Services (Paris, OECD Publishing, 2010), p. 70. R. W. A. Franceys, “Charging to enter the water shop? The costs of urban water connections for the poor”, Water Science and Technology: Water Supply, vol. 5, No. 6 (London, International Water Association (IWA) Publishing, 2005), pp. 209-216, 213 and 215. Ibid., p. 216. 11-44364