Eco-EAR: A method for the economic analysis of urban water systems providing services

摘要

In the context of new challenges and emerging needs for transparency regarding users, urban water management is obliged to forge links between different technical fields. This implies managing interfaces between multiple stakeholders on the one hand, and ensuring the adaptability and sustainability of technical infrastructures on the other hand. In a period dominated by public spending cuts, the optimisation and efficiency of the system's infrastructures and the organisation of the stakeholders involved has become important for guaranteeing the continuity of the services provided. From the economic viewpoint, this challenge is related to tracking and reducing costs. Moreover, it also concerns the need to communicate arguments related to service costs to both users and stakeholders. Consequently, the "Eco-EAR" method was developed by adapting Functional Analysis (FA), Activity Based Costing (ABC) and Whole Life Costing (WLC) approaches in view to describing how the direct costs of the sewerage service provided by wastewater utilities are structured. The cost structure is analysed according to the activities and physical flows comprising the primary and secondary functions of an urban water management system. Three goals are targeted: i) to explain the costs of the system to the local authority (owners) and users; ii) to identify the activities that have the greatest impact on costs in order to plan cost reduction actions; and iii) to assess the apportionment of costs per activity and per physical flow, in order to better understand the system by combining both its economic and technical dimensions. The performance indicators proposed by the "Eco-EAR" method could also be used for benchmarking. The method is implemented in a real case study: the sub-system territory around the city of Mulhouse (northeast France) under the responsibility of a water management authority.