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in extreme cases [Jouravlev, 2004]), including both physical and commercial losses · Low level of household metering (as in Argentina, Panama and Paraguay) or artificially low tariffs, resulting in water consumption far above normal levels and in over-dimensioned water production and treatment systems (Ferro and Lentini, 2013; Jouravlev, 2004) · Heavy reliance on groundwater, which accounts for more than half the water supply in many countries, with increasing pumping costs due to falling water tables in many areas due to inadequate aquifer management · The need to meet more stringent drinking water and effluent quality standards, but especially to resort to more distant (as in Mexico City and São Paulo), less convenient and more polluted water sources, or even to seawater desalination, particularly in the Caribbean (as in Aruba and Trinidad and Tobago) and arid areas of Brazil, Chile, Mexico and Peru · Wide and low density operational areas, often with complex topography · Expansion of wastewater treatment (and associated sludge disposal), which has almost tripled in recent decades (Lentini, 2008), although it also presents new opportunities for biogas production Increased energy costs have direct implications for service affordability and sector financing, especially considering that the vast majority of water utilities struggle to attain self-financing and that sector investment, and sometimes even operation and maintenance, is often financed through state budgets (Jouravlev, 2004; Fernández, 2009; Ferro and Lentini, 2013). With more efficient operation, many water utilities would be able to reduce energy costs by 10% to 40% (Rosas, 2011), and even more (up to 75%) in wastewater treatment – savings that could help expand service coverage to the poor, improve service quality, and make bills more affordable for customers. 13.3 The way forward The search for appropriate response options is still a major challenge for Latin American and Caribbean countries. Regional experience suggests that the most promising strategies to more efficiently manage the water–energy nexus include the following: · · · Development of effective coordination mechanisms between water and energy authorities, at both national and river basin levels, to ensure their policies, instruments and objectives are mutually consistent and do not undermine each other. An important prerequisite is better availability and access to accurate and consistent water and energy data as well as facilitating dialogue among stakeholders on relevant issues. Improvement of water and energy regulatory frameworks, and harmonization of control, policy- making and financial mechanisms, with particular attention to multipurpose water use, requirements for approval of dam projects, resource conservation and reuse, demand management, watershed protection, strategic planning, and appropriate tariff/pricing and subsidy design. Transition to integrated water resources management (Solanes and Jouravlev, 2006), with emphasis on: o Water authorities that are independent from sector influences, in order to ensure objective decision- making, and whose powers and resources are in line with their responsibilities o An effective conflict prevention and resolution system – including an efficient judicial system that is capable of resolving conflicts with low transaction costs and consistent results – and river basin organizations that integrate all relevant stakeholders o Water (re)allocation systems that promote investment in the development and conservation of water resources and, at the same time, avoid monopolies and facilitate coordination and control in the public interest, taking into consideration the particular characteristics of the water system and the river basin o Protection of watershed ecosystem services and environmental flows, as well as integration with watershed and forest management, as key strategies for ensuring water and energy sustainability WWDR 2014 LATIN AMERICA AND THE CARIBBEAN 97PDF Image | Water and Energy
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