Developing a methodology towards full water cost recovery in urban water pipe networks, based on the "user-pays" principle

In the present paper, using an urban water supply and distribution system as a case study (city of Kozani, Greece), the components of the full water cost (direct-DC; environmental-EC; resource-RC) are analysed, introducing approaches for their reliable calculation. Regarding the DC, the marginal capacity cost and the necessary preconditions for its integration to the final water price are analyzed. Regarding EC, the role of non urban water users in creating EC is presented. Regarding RC, water losses are introduced as a competitive use. The role of "next more expensive solution" approach in defining ways for costs proper calculation is analyzed. © 2013 The authors