An Approach to Analysing Water Consumers’ Acceptance of Risk-Reduction Costs

Abstract

The proper operation of a water supply system (WSS) requires constant investment. The priority is to provide residents with high quality potable water, in the required quantity and pressure, in accordance with the applicable regulations. The paper presents an assessment of the potential inherent operational risk of a WSS in support of the risk-based investment management process. It is of high importance to invest in the operational safety as it concerns both producers and consumers. The investment engenders additional costs that should partially be supported by the consumers. Thus, the paper presents a methodology to analyse consumers’ readiness to accept water supply services’ additional costs. The proposed methods may underpin a comprehensive program for risk-based investment management and operational decision-making. The case study and the approach in this article concern one particular regional WSS, based on information collected from water consumers. The assessment suggests a willingness to tolerate additional costs in view of enhancing the performance of the water supply services.