Determinants of customer decisions to pay utility water bills promptly

Over a decade ago the 'Dublin Principles' shifted global thinking towards treating water as an economic good. Accompanying this conceptual shift has been a wider move towards focusing on water consumer's needs and preferences and their willingness to pay (WTP). WTP studies are now widely considered as forming part of an improved planning methodology for water supply, because they provide a basis for distinguishing financially viable water supply projects from those that are destined for failure. However, experience in several low-income countries suggests that cost recovery is still a major problem even for those projects with seemingly good initial financial models. For water utilities, one of the key determinants of overall cost recovery efficiency is the ability to recover payment, within a reasonable timeframe, for all the water bills sent to customers. This study used empirical data, obtained through a cross-sectional survey in eight small urban centres in Uganda, to establish the determinants of customer decisions to pay utility water bills promptly. [Continues.]