The Impact of Water Price on the Financial Sustainability of the Palestinian Water Service Providers

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dc.contributor.authorMurrar, Abdullah
dc.contributor.authorAwad, Ibrahim
dc.contributor.authorHasan, Abdel Fattah
dc.contributor.authorYaqob, Eyad
dc.contributor.authorBarghothi, Ihab
dc.contributor.authorSadaqa, Ahmad
dc.contributor.authorSamhan, Subhi
dc.contributor.authorTamimi, Abdelrahman
dc.date.accessioned2019-03-05T10:16:30Z
dc.date.available2019-03-05T10:16:30Z
dc.date.issued2017-11-27
dc.description.abstractThe impactof water sales price on the performance of water service providers is typically something of a mystery. High prices mean more revenue and profit; but it may lead to less bills collection and encourage the illegal connections. Yet, this argument has not been fully addressed in the Palestinian water sector; this research evaluates the effect of average water prices on the financial sustainability key indicators as collection efficiency, profit or loss percentage, non-revenue water, staff productivity, daily consumption, operating, and maintenance cost. The average price of cubic meter sold is segmented into low, medium, and high categories. Multivariate analysis shows that there are significant differences in profit or working ratio, daily consumption, and operating cost based on the different price categories. Further significant differences have been found in non-revenue water, collection efficiency, and water production based on low and high price categories. On the other hand, no significant difference has been found in staff productivity. The results show high price set by Palestinian water providers, leads to an increase in the bill collection rate and profit margin. However, negative relationship has been found between the price on one hand, and non-revenue water, average daily consumption, and water production on the other hand. The implication of these findings reveal that the Palestinian water providers should increase water prices gradually to cover operating and maintenance cost for better financial performance and sustainability.en_US
dc.description.sponsorshipThis research paper has been made possible through the support from MEDRC Water Research at the Sultanate of Oman. We would like to express our deepest appreciation to MEDRC for publishing this paper. The deepest gratitude also to Palestinian Water Authority (PWA) for valuable, effective supervision, coordination of the scientific researches, and directing them toward finding creative solutions for current water problems.en_US
dc.identifier.citationMurrar, A., Awad, I., Hasan, A.F., Yaqob, E., Barghothi, I., Sadaqa, A., Samhan, S. and Tamimi, A. (2017) The Impact of Water Price on the Financial Sustainability of the Palestinian Water Service Providers. Journal of Environmental Protection, 8, 1490-1508. https://doi.org/10.4236/jep.2017.812092en_US
dc.identifier.issn2152-2219
dc.identifier.urihttps://dspace.alquds.edu/handle/20.500.12213/4745
dc.language.isoenen_US
dc.subjectCollection Efficiencyen_US
dc.subjectFinancial Sustainabilityen_US
dc.subjectPalestinian Water Service Providersen_US
dc.subjectWater Priceen_US
dc.subjectWorking Ratioen_US
dc.titleThe Impact of Water Price on the Financial Sustainability of the Palestinian Water Service Providersen_US
dc.typeArticleen_US
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