drain TRADER
Lost revenue is biggest Covid risk facing utilities
Non-payment of customer bills poses the biggest Covid-19 threat to water utilities worldwide, research presented at the latest Water Action Platform webinar demonstrates. Abi-weeklywebinar fromglobal technology consultancy Isle gives a snapshot of best practices and lessons learnt fromutilities and water sector experts around theworld as they respond to the coronavirus pandemic, while addressing other key issues facing the industry. Hosted by Isle chairman Dr Piers Clark, thewebinars are open to all. Here is a round-up of key learnings fromthe sixteenthWaterAction Platformwebinar, which took place on 6August.
Webinar 16: Six key learnings 1) Non-payment isCovid-19’s biggest threat towater
Water utilities are“walking on a knife’s edge”, due to a significant loss of revenue caused by non-payment of water bills during the
crisis.Acase study fromRolandoHinojosa, chairman of the National Federation of Water&Sanitation ServiceCo-operatives and presented to theWater Action Platformwebinar, highlights that 160 drinkingwater and sanitation co-operatives in Bolivia are essentially
insolvent.This is due to a government instruction to halve customer bills along with non- payment, thewebinar learned. Dr Clark drewattention to a commentfromLukeWilson, deputy director at theCenter forWater Security&Cooperation,who said: “Utilities are being forced to take on debt by the government but the peoplemay not be able to repay it and the governmentmay not be able to backstop the utility.We’rewalking on a knife’s edge.” Dr Clark suggested three steps tomove forward:“Firstly,we must openly and honestly acknowledge the situation sowe can start a dialogue. Secondly,we should embrace the digital revolution.A number of sources have identified that one of the key positive impacts ofCovid-19 will be a greater shift to
digital.This could be transformational for the water sector.We’ve knownfor years that ifwe use our data more intelligently,we could make more informed capital and operational decisions but it’s difficultmoving legacy systems to a
54 drain TRADER | September 2020 |
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A wastewater based epidemiology programme has been launched in South Africa.
newdigitalway ofworking. PerhapsCovid-19 will provide the impetus we need. Finally, is the
rolenewtechnology.As a sectorwe are not short ofnewtechnology, however, the industry is often described as being slowto adopt.” With this in mind the nextWaterAction Platformwebinar will have a particular focus on technology and will provide a summary of highlights fromIsle’s recentCovid-19 technology scan.
2) Football is helping raise awareness of the global water crisis Manchester City football club has teamed up with technology provider Xylem to create a film drawing attention to the reality that theworld is running out of water. While water professionals will be only too familiar with stark predictions – including that by 2045wemay not have enough water to meet our needs – howdoes the sector get theworld to notice? By pointing out the threat and relating it to somethingwe are united around, Dr Clark told thewebinar. The film,The End of Football, highlights that if complacency around water continues, theworld is one generation away fromwater scarcity touching every aspect of our lives. Dr Clark said:“Interestingly, the film wasmadebefore the pandemic occurred, and beforeCovid-19 actually stopped football matches
happening.The coronavirus has shownus just howfragile theworld and its favourite sport really is.”
3) Domestic development spending tofallby US$396 billion Lowand middle-incomecountries will have $396 billion less than projected for public spending on development from2020-21, a report presented to theWaterAction Platformwebinar
estimates.The research fromWaterAid and EndWater Poverty also predicts that lower incomecountries will receive $27 billion less if donors maintain their current levels of funding relative to gross domestic product. Recommendations include raising the level of aid fromgovernments of higher incomecountries from0.7% of gross national incometo 1%. Research fromStockholm InternationalWater Institute and Unicef into
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