Bank forecasts global water price rises to stem leakage and boost economies
Investment bank, Credit Suisse, has reported water prices increasing worldwide at more twice the global inflation rate while leakage was “one of the key issues that needs to be addressed across urban areas, especially those in developed markets.”
The Credit Suisse researchers forecast further price increases in future to address “infrastructure deficiencies,” environmental targets and because of “the multiplier effect of these investments on other sectors and the wider economy.”
Credit Suisse cited Global Water Intelligence’s report of a 3.91% hike in water tariffs during 2016-17 driven by resilience upgrades, water scarcity and growing urban populations.
Elsewhere in its report: Water scarcity: addressing the key challenges, Credit Suisse said: “While access to water
may be higher in cities, water losses also tend to be high, suggesting a lack of maintenance investment.” It offered, as examples, leakage in the UK at 20% and 60% of London’s network being more than 60 years old.
Highlighting that leakage was “not just a developed market issue,” it reported instances of 60% leakage in emerging economies. It showed (pictured) Mexico City leading on leakage rates for “key cities” at 44% but followed by Glasgow at 37% and Rome a 33%.