_{By Jane Anyango}

Over 40 Makerere University researchers from the School of Economics were on 14^th October, 2021 trained on new methodologies of information treatment into improving Water bills payments in Uganda and other countries.

The training held virtually and physically was organized and hosted by the Environment for Development Imitative (EfD-Mak) Centre.

The seminar was facilitated by Dr. David Fuente from the School of Earth, Ocean and Environment, University of South Carolina USA.

Dr. Fuente presented a number of studies conducted in different countries including Kenya and Ethiopia under the theme, “Testing information treatments to improve the Financial   sustainability of water utilities”. The studies according to Dr. Fuente are premised on the Global water sanitation and infrastructure challenge and the Sustainable Development Goal on provision of safe and affordable water sanitation for all by 2030.

He said policy makers face the challenge of raising water prices and improving customer bill payment behaviour noting that both are politically difficult.

“Water infrastructure is capital intensive, but largely out of public view. Improving customer awareness of the capital intensity of water supply and sanitation service delivery may increase customer perception of, “fair” water prices, however, mode of information treatment likely matters and further research is needed”, the facilitator said.

Dr. David Fuente explained that customer arrears are a chronic problem in the water and sanitation sector in the global South which undermines utilities financial stability.

“Arrears undermine tilities financial stability. For example, in South Africa, households owed municipal governments 40 billion Rand (about 4 billion USD). In Kampala Uganda, 57% of residential customers accounts have arrears while in Nairobi Kenya, 60% of customers have arrears”, he cited.

Despite the challenge, Dr. Fuente observed that, very limited work on why customers do not pay their bills and common assumptions may be wrong and lead to substantial policy mistakes.

“Simple, low-cost information treatments may improve customer behavior, but evidence is needed and are likely to be panacea.Policy makers need to think carefully about deploying multiple, well targeted policy instruments to improve customer payment behavior”, he stated.

Dr. Fuente provided insights from a series of literature and studies from Kenya, Ethiopia and South Africa that examined customer perceptions of, “fair” water prices and information treatments to improve customer bill payment behaviour.

The studies sought to address whether information treatments can improve customer bill payments and which treatments are more effective at improving customer bill payment. The general information treatment interventions discussed to improve bill payment included hard threats of disconnection for non-payment, soft encouragement that informs tenants, simple payment reminders and routine billing information, use of subsidies, sanctions, moral suasion.

The goals of these studies were to reduce arrears and bill-nonpayment to improve the financial stability of utilities; Boost the agency’s financial position to cater for its investments and to increase the social welfare from the agency’s investments.

In Uganda Dr. Fuente said there is proposal that is competing for Sida funds titled, “Using information treatments to improve water bill payments under the National Water and Sewerage Corporation”.

The Director EfD-Mak Centre Prof. Edward Bbaale said, such a study is practical and primary on how to create a shock in the perceptions of people so that they can start responding to paying their bills.

Prof. Bbaale said this training was important not only to the country and researchers, based on reason that these are new techniques of analysis that researchers at the EfD-Mak centre needed to pick up and get interested to undertake similar studies.

The Director expressed the need for water agencies to have financial stability to give a good service noting that what is being proposed is to make sure that financial stability of water agencies is improved.

Prof. Bbaale shared that water supply is capital intensive and requires a lot of money to lay pipes and maintain the treatment plants and yet customers comparatively pay less.  He said, to supply clean water, expand the reach and maintain constant water supply, water supply agencies require substantial resources.

He noted that the National Water and Sewerage Corporation of Uganda is constrained by resources to maintain their supply and pipes and at the same time lack enough resources to reach the unserved areas.

“There is no study yet in Uganda that is trying to utilize the methodologies learnt into analyzing how to improve water bill payments in Uganda despite the common knowledge that many customers have payment arrears.

I am hopeful that the proposed study in Uganda will win the Sida grant and will go a long way in informing NWSC and government on how to improve water bill payments. And, if this study is implemented, it will be a great opportunity for us to see what findings come forth and what recommendations are put forward for government to improve water bill payment”. Prof. Bbaale stated.

Participants speak on the training

Dr. Oryem John Bosco, a Lecturer in the School of Economics described the training as a good collaboration and chance for researchers to understand what is going on with other researchers.

 “And in this case, understanding what research is going on in terms of utility payments and challenges that communities face in paying water bills is a good study which links with the SDGs and the national development goals.

 So understanding why payments delay and what can make people pay their water bills is a very good innovation. From this training and the proposed Uganda study, the facilitator is intending to craft messages to the water consumers to ensure that public utilities get the desired revenue that can make them operate without too much financial constraints”, Dr. Oryem commended.

Mr. Peter Babyenda the Policy Engagement Specialist in charge of coordinating the Inclusive Green Economy (IGE) training program who is also a PhD student thanked EfD-Mak center for organizing the wonderful training.

“The presentation is new to us, and it touches on of the key issue-water, where we have so many problems. I heard there is a proposal for Uganda which I am so interested in and can’t wait to see how this study goes. I am interested in the findings and to learn more on the methodologies”, Mr. Babyenda stated.

Jane Anyango is the Principal Communication Officer, College of Agricultural and Environmental Sciences (CAES)