About

GWP’s VISION is a water secure world. Our MISSION is to advance governance and management of water resources for sustainable and equitable development.

OUR UNIQUE VALUE: GWP mobilises action on the global water crisis through a unique combination of social capital, shared values, credibility within the global water community, bottom-up orientation, and expertise. A network of networks, we ensure the ‘voices of water’ can inﬂuence local, national, regional, and global development priorities. We are committed to our role as a neutral convener and respected for our focus on inclusiveness and sustainability.

Learn

GWP creates and communicates information about integrated water resources management which contributes to improved water governance and, ultimately, water security.

Together with our Partners, we provide knowledge resources and capacity building activities for solving water problems.

Partner

Institutional Partners are the basis of GWP's multi-stakeholder partnership. A strong, diverse partnership can bring about the changes needed to achieve a water secure world. In this section, learn about the benefits of being a Partner and meet a few who already are. We invite like-minded organisations to join us!

GWP Regions

This is where you can find links to the websites of our Regional Water Partnerships (RWPs). RWPs are closest to the countries where we work. They share knowledge and learning across national boundaries and are expected to have an open, inclusive, and gender-sensitive policies for bringing together as wide a group of stakeholders as possible to solve water problems.

Chile: System of households’ water use subsidies (#404)

In Chile, water has been privatised. However, in order to make sure that access was still available to all strata of society, the privatisation was accompanied by a robust regulatory framework, including a system of direct subsidies for drinking water consumption and sewage services for low income households. This case thus illustrates that in case of privatisation, a direct subsidiary scheme should be considered.

Description

The privatization of public water companies in Chile was complemented by reforms, during which a robust regulatory framework was created, public utilities were strengthened, tariffs were increased, and a system of subsidies for needy households was introduced to help them cope with higher tariffs.

To guarantee adequate and affordable services for low income households, Chile introduced individual means-tested water consumption subsidies. The aim of the subsidy system was to channel the resources to those who actually needed them.

A significant proportion of its inhabitants had sufficient incomes to pay for the basic services without needing any support or additional help. This made it possible for Chile to adopt a subsidy system focused on the most vulnerable social groups. This situation was addressed in the subsidy law aiming to protect low-income families.

The system chosen was a direct subsidy, targeted to users. It granted access to basic consumption of drinking water and sewage service for each household.

Action taken

The Subsidy Law from 1989 established a direct subsidy for drinking water consumption and sewage services to low-income family groups and residential customers.

This law also set the terms on how a direct subsidy for the consumption of drinking water and sewerage services is granted to residential users of low-income.

This subsidy system is managed by the corresponding municipalities, which in turn are responsible for the registration process and selection of beneficiaries.

Lessons learned

Prior to undertaking privatization and/or public-private partnerships, effective, clear and adequately implemented institutional and regulatory reforms need to be considered.
The direct subsidy scheme should be considered and must have an enabling but not supportive approach.
The poorest households are willing to pay for a safe and reliable service however, sufficient education and promotion is necessary.
A high percentage of households in Chile have a micro measuring device, which enables the existence of a subsidy based on the real consumption of each beneficiary
The subsidy should cover only the difference between actual consumption and the ability to pay.

Page last edited: 7/29/2013