Worldwide the prices for water increase dramatically, and will rise further

Water subsidies are the reason for water wasting

There is a classic example of a subsidized waste of water: Majorca. The cubic meter of sewage and drinking water costs 30 cents at actual costs of approx. €2.5 in Majorca. Majorca has a strongly distinctive tourism industry. Hotels have a high water consumption and thus a lobby has formed on the island, which has politically prevented a rise of the water prices.

Thus, new technologies do not have any chance. If the Majorcan had to pay the actual costs of € 2.5/m³, more effective technologies would have gained acceptance long ago.

There will be a costs explosion in Europe as of the year 2010 (European laws come into effect marking the end of the water subsidies)

There are four reasons for the expected, enormous increase of the drinking water prices:

1. Increasing need,
2. Decreasing renewable water resources,
3. Deterioration of the resource quality (higher processing effort due to increasing pollution) and
4. The cut of governmental subsidies.

The latter is also responsible for the increase of the sewage costs. (Waste)Water subsidies have to be abolished by 2010 in Europe. This will cause a price increase of the total water costs of at present � 1.5/m ³ to � 3.5/m ³ and even more in some countries. The European policy of the water prices provides 4-foldly graded charges:

1. Charges on the water withdrawal. Base: The result for the costs to replace the taken water quantity.
2. Charges for the processing to drinking water. Base: The costs for the treatment process.
3. Charges for the sewage treatment: Base: The costs for the treatment process.
4. Charges on the disposal of the treated sewage. Base: The repair costs of the environmental damages caused by the disposal of sewage depending of the quality of the sewage.

The 1. charges will cause a great jump in prices particularly in the south European countries.