Weitere ähnliche Inhalte Kürzlich hochgeladen (20) Casestudy Water WTP1. Case Study: Willingness to
Pay for improved 24x7
Water services
Catalyzing emerging business models through
STAKEHOLDER ENGAGEMENT | CONSULTING | RESEARCH
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2. Client situation…
• Client in phase of taking over the water operations from local Municipal
Corporation (MC) in 2012.
• A Technical and Financial Pre-feasibility report existed. A joint Network
survey mapping was also completed, and customer indexing was
happening in parallel.
• The project was undergoing financial closure for INR 1000+ cr. with a Bank.
The Bank wanted to assess the Willingness to Pay (WTP) for piped water &
improved services by the city customers, with broad internal objective to
validate independently the top line projections towards financial viability.
• Delayed bank financing, already water crisis in the summer peak time, and
water tariff hikes created a tough challenge for the client, on managing
the local water network while handling customer resistance against
privatization.
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3. Client’s key questions…
What is WTP of customers for new and improved services?
What is Willingness to What consumption &
Pay (WTP) for water payment trends
piped connections and across different
improved services? customer categories?
WTP for WTP for WTP for WTP for Residential Acceptance Reasons to Preferences
water New New Meter water vs. for new resort to of billing and
charges Service Charges to charges Commercial. private illegal payment
with 2-4 Connection allow with 24x7 managed connections
hours daily Charges meter basis water Piped vs. water or forced
Non-Piped services behaviors?
supply billing supply
Rich vs. Poor
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4. pManifold’s Solution: WTP Framework based on Contingent
Valuation Method (CVM) deployed as a land based, random
sampled survey executed independently
WTP Elements Questionnaire Design
Respondent profile
Perceived
‘Value’ Water sources characterization
Need/Demand
Affordability
‘Gap’ Opinion on existing MC water services
WTP Willingness to receive & pay for improved
services
Billing preferences
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5. City existing MC supported Water service levels
were found to be highly dissatisfactory
1000+ customer surveys across wards & various socio- Borewell, followed by Tankers were other most
economic classes sought sources of water after pipe
Existing Service Levels
• 1/3rd HHs with piped connection. Remaining high
mix of illegal and no-piped HHs.
Sampled wards • Majority population had dissatisfaction on existing
MC water service levels
• ½ hours alternate days is best supply situation, and
½ hours twice in a week is worst case
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6. WTP against existing poor service quality was
found high
High WTP for 24x7 water charges across High Willingness in the users to change to
different socio-economic classes improved services and pay for it
High Willingness in the users to share costs
for New Service Connection & Metering
A1 represent ‘Rich’, and E2 represent ‘Poor’
Certain information in this case study has been sanitized due to proprietary reasons.
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7. Key learnings drawn by client
An increased
The current value High % seems to
engagement and
to customers be willing to share
cooperation from
50% higher WTP against their additional costs
People inclined customers towards
exist for regular existing expense (like new service
towards getting a regular water
monthly water on various mix of connection and
steady and clean charges payment
charges, provided alternative water new meter costs)
supply of piped could come, with
improved water sources is fairly to support the
water (including flexibility of
services could be poor, and also new private
the illegal piped reducing the
guaranteed and higher than service provider
users) connection
demonstrated proposed tariffs for improving the
charges by
under new network and
installment
improved regime overall system
payment.
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for your business to improve and grow!
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pManifold +91 95610-94490 +91 88056-55069
Community Blog Rahul.Bagdia@pManifold.com Faiz.Wahid@pManifold.com
Articles, technical notes.
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