illustration for the drivers of inequality

Driver Category 5.1

Unequal access to clean water, sanitation and utilities to meet energy needs

This driver captures all aspects related to basic infrastructure and investments that guarantee access to clean water and sanitation and good standards of hygiene for all, as well as meeting basic energy needs (electricity, cooking, warmth).

Aspects of state discrimination via infrastructure policy design and implementation are also captured here.

Analysis under this driver category should cover the appropriate regulation of corporate behaviour in relation to water, sanitation and energy markets.

Aspects of political capture that impact how infrastructure policy is developed and aspects of privatisation (PPPs, PFIs etc.) are captured here if relevant.

Guiding Questions

General Questions

  • Is achieving universal coverage to meet water, sanitation and energy needs a core commitment of the government?
  • What evidence exists regarding the steps the government is taking to achieve this?
  • What are the most urgent challenges with regard to the provision of clean water, sanitation and to meet energy needs?
  • Which locations have particular infrastructure gaps?
  • Which locations/households face particular challenges (e.g. accessing energy for cooking and/or warmth)?
  • Is energy policy appropriately designed (e.g. to deliver clean energy solutions going forward; to improve air pollution problems related to cooking methods; to provide small-scale off-grid, renewable solutions for remote areas etc.)?

Public budget

  • What is the mix of funding for water and sanitation and energy investment?
  • What is the government contributing?
  • What are bilateral and multilateral organisations contributing in grants and loans?
  • What private financing is being sought and what arrangements are being used to leverage private finance?
  • What are the different levels of investment in infrastructure and energy solutions in different regions in the country?
  • Is there pronounced inequality between locations in terms of water and sanitation and energy budgets or is there evidence that the pattern of investment takes into account inequalities between locations?

Regulation of privatised utilities

  • How is the privatised market regulated?
  • Is the regulatory body appropriately staffed and trained, and sufficiently funded?
  • How is the regulatory framework structured to ensure water and sanitation and energy services are made accessible to the economically disadvantaged?
  • What are the incentives or obligations for dominant operators to extend services to areas without coverage?
  • Do privatised firms have investment targets related to maintenance, the improvement and expansion of infrastructure coverage, and with regard to meeting quality standards?
  • Are the relevant contracts or agreements public?
  • Are firms meeting those targets and what action is taken, or penalties applied, if not?
  • Are any tariffs that are being charged for water and sanitation and energy increasing or decreasing?
  • What subsidies exist to enable access for the economically disadvantaged?
  • Does the subsidy structure benefit the consumer or the private provider of the service?
  • Are large users paying their share?
  • Is there evidence of corruption in this area?
  • Is there analysis available comparing the real benefits and costs of public vs. private provision of key services?
  • Is there a realistic assessment of the ability of the state to regulate private providers appropriately?

Ownership structure, profit and tax

  • What is the ownership structure of the firms involved in the privatised energy and water and sanitation markets?
  • Is there evidence that owners exert influence on infrastructure policy or on any of the regulator’s decisions?
  • What is the approach of the regulator with regard to ensuring competition and scrutinising mergers and acquisitions?
  • Is there evidence of concentration of ownership between operators affecting prices and the standard of service for consumers?
  • How are private operators taxed?
  • What taxes apply and are these appropriate?

Indicators

Potential indicators to monitor the drivers of inequalities in this main driver category

  • % of national budget/GDP spent on water and sanitation/energy
  • Amount of water and sanitation investment per region (public and private)
  • Amount invested in rural water and sanitation services and rural electricity schemes (public and private)
  • Amount of time taken to get to a clean water source
  • Cost of subsidies provided to enable access of low income households
  • Retail price movements in comparison to wholesale energy market prices
  • Internal rates of return of companies by investment project

Candidate Policies

To see related Candidate Policies in this main driver category please click here.