Summary of the technology
Water planning tradicionally used to apply hydrological models to determine the demand for water services based on forecasts of future supply needs and population growth. The supply needs parameter used to be estimated in terms of growth compared to the current situation at the time, which encouraged policies of increasing water supplies and catchment infrastructures.
However, the demand for water services depends on a series of globally interrelated variables: Population growth or increasing numbers of water service users, higher earnings or economic activity, water service price levels and the degree of technical efficiency in water use or changes in user behaviour.
Description of the technology
IMDEA WATER SOLUTIONS-University of Alcalá: WaTaPro (Water Tariffs Prospective) model
The WaTaPro model is a management tool for analysing demand for water services for urban use, and the corresponding tariffs. It is based on a simulation that aims to optimise financial cost-revenue flows, depending on the behavior of certain variables.
The tool consists of two parts:
- Situation summary (Figure 1) , where we define the main parameters and assumptions used to make the simulation calculations, taking into account the recovery of investment, running, maintenance and preservation costs, as well as the structure and tariff levels. The scenarios also consider parameters such as “Social discount rate” and “Technological change rate”, which must be set prior to calculation.
- Results (Figure 2) -after calculation, the outcomes are generated by user typology. The development of the rated items (service fees and consumption quotas by section) is presented for each year within the simulation horizon, along with the number of users and the volume billed.
This tool is useful for water management companies (suppliers), being applicable to:
- Water pricing systems
- Decision-making support systems
- Economic modelling
- Prioritisation of water management investments
- Hydroeconomic analysis