WATER P-NOTES ISSUE 15 JUNE 2008 44737 Consumers count: How water and sanitation utilities can become more accountable to their users T his note presents tools that can help mak- Tools for accountability range ing service providers more accountable to the from information to consultation, people they serve. The voice of users is often muted in water utilities. One consequence is that participation, and recourse utilities do not take account of users' priorities and preferences. The utility, in turn, loses the trust and A range of tools can help utilities become more ac- cooperation of the community that it is supposed to countable to their users. serve. The result is often service deterioration, fur- Information tools include the publication of an- ther alienating users. nual reports, information provided at service centers Traditionally, users relied on politicians to or with bills, and structured outreach programs maintain oversight of budgets and compliance (Figure 1). Information needs to be offered in plain with rules and to intervene on their behalf when language that users can understand. services failed. This institutionalized a "long route" While information provision is a one-way pro- of accountability from user to political representa- cess, consultation involves actively seeking and tive to service provider. Modern approaches to listening to users' opinions. Surveys, if appropriately public management seek to hold service providers designed, can help utilities to understand and re- more directly accountable to their users for the spond to users' preferences, as well as to chart their outcomes of their work. Providers are expected to own performance. More interactive consultation tools ensure that water flows safely and reliably from include public hearings and advisory committees. taps, t hat blocked drains are cleared, and that services are accessible and affordable to all. Ac- Tools allowing user participation in decision countability in this context is about establishing making include giving consumer representatives a direct "short route" between users and service formal voting rights in the decision-making bodies providers. of utilities or regulatory institutions. At the extreme, this can extend to consumer ownership of a service Tools for accountability cannot by themselves provider. Involving consumers in service provision provide sustainable water services. But their use can be a way of ensuring accountability as well as can contribute to this goal, by improving utility simply getting a job done. practices and the utility's policy and institutional environment. A service provider is fully accountable only if users have some way of voicing their concerns (re- This note reports key messages and findings from "Ways to improve water services by making utilities more accountable to their users: A review," by Mike Muller, Robin Simpson, and Meike van Ginneken, published by the World Bank (Water Sector Board Working Note, No. 15, May 2008). Readers may download the complete paper from www.worldbank.org/water. WATER P-NOTES individuals, while others address the interests of Figure 1: Tools for accountability specific groups or communities, and others cover Information · Community outreach and ad all customers or the entire citizenry (both served and hoc user meetings unserved) within a jurisdiction. A tool that targets in- · Publication of performance data dividuals can be inclusive if it is equitably available · On-demand information to all. The inclusiveness of collective tools often de- provision pends on how user representatives are selected and Consultation · Forecast surveys appointed. Special measures will often be needed · Retrospective performance and to reach out to people who have no voice in collec- perception surveys tive mechanisms or who lack access to information · Structured consultation processes or redress tools. In the context of water services, · Membership on advisory bodies particular attention must be paid to ensuring that Participation · Membership on decision-making the specific needs of women, minority groups, and bodies poor communities are met. · Involvement in the execution of specific utilities activities Tools of accountability often have consider- · Participatory budgeting able costs for both utility and users. The trans- · Ownership of utility action costs for users can be a barrier to the Redress/ · Utility complaint mechanisms successful application of some of the tools and recourse · Third party complaint must be evaluated and minimized. For a utility, mechanisms integrating tools for accountability into normal · Legal recourse and redress operational management lowers direct costs and ensures that the tools are linked to internal per- formance management systems. This strengthens the incentives for staff to adopt a user-focused ap- proach. course) and then, if a complaint is justified, obtain- Sustainability is also important. Many tools are ing an appropriate response (redress). Complaint only effective when implemented over time (infor- systems are an important vehicle through which a mation and complaint mechanisms) or repeated utility can engage with users. regularly (surveys). In some cases, tools introduced by external parties are difficult to sustain, because of their complexity and cost. Correctly chosen and properly implemented, tools for accountability have contributed Tools should match the utility and to better performance in many its environment water utilities around the world Selecting and applying a set of tools is no guaran- The effectiveness of tools depends on how they are tee of success if the environment is not conducive. designed and implemented. The challenge is to Success is often affected by external factors such as choose a "suite" of tools to ensure that all service the physical and financial constraints that limit the users can engage with the utility or at least have feasibility of improvements in service, political will, their concerns and views heard and responded to. the attitudes and culture in user communities, and Individual tools perform different functions. They the lack of clear service mandates. may communicate key information to users or help The corollary to this is that the promotion of utilities to understand users' preferences and ensure greater accountability can help to create a more their participation in key decisions, and they may conducive environment for service provision. build trust and a habit of engagement between user and utility. Important factors within the utility include cus- tomer-focused organizational structures, effective To be successful, tools should be inclusive, performance-management systems and the pres- efficient, and sustainable. Some tools focus on ence of service-oriented skills. ISSUE 15 · JUNE 2008 Different tools are appropriate publication of service data (in the form of annual at different stages of a utility's reports and other products) will continue to play evolution an important part. Information sharing and structured consultation There is a strong tension between the need for tools, processes are vital at all stages when high-impact which is higher in less conducive environments, and decisions are being taken on future investment the potential of tools, which is lower in less con- priorities and service levels as well as on organiza- ducive environments. Many tools for accountability tional structures and the possible involvement of the can only be introduced when utilities have devel- private sector. oped some capacity to respond to their challenges. But the need for accountability will by definition be greater in less conducive environments. Success factors in context Where a utility is pre-functional, with poor ser- vices, weak organization, and low levels of public The application of accountability tools has, in trust, simple measures to share information about many cases, led to improvements in the perfor- the state of the organization and informal consulta- mance of water utilities and their services. Some tion on consumers' priorities will be critical. User in- conclusions can be drawn about the context in volvement in the execution of certain utility functions which they work best. can help build trust. A pre-functional utility will have First, a reasonably supportive environment is limited capacity to introduce its own tools, so tools needed beyond the water sector. Basic corporate are often deployed by third parties such as regula- governance and legal frameworks must be in place, tors or civil society groups. with acceptance that political interests should not As utilities move to a basic then an intermediate simply override administrative processes. The broad stage, improving their organizational structure and concept of accountability needs to be accepted, not services, accountability tools can enable users to just by utilities but also by regulators and govern- understand and act on their entitlements and com- ments at different levels. municate their preferences. At this stage, utilities Within the sector, there needs to be sufficiently will often introduce basic customer service systems, broad agreement about the application of tools if such as complaint processes and informal consulta- they are to be useful. Accountability is a process tion processes. Utilities can use surveys to obtain that builds trust but a certain degree of trust is information on critical issues, or civil society can needed from the start. There is a logical sequence provide them with this information generated by for the introduction of accountability tools, related to consumer report cards. Participatory budgeting can the state of the utility and its evolution. Some tools help citizens communicate their preferences to local are prerequisites for others, so there are some criti- governments. cal paths (although not one set path) for building As utilities become autonomous, self-sufficient up a suite of accountability tools. providers of reliable services, tools of account- For accountability tools to be effective, their ap- ability become intrinsic to their overall toolkit of plication must be accompanied by the development management and oversight systems, and become of public capacity among utility users. Users' ability increasingly formal. At this stage, accountability to engage with their service providers will need to tools can help to prevent utility performance from evolve as accountability moves from simple infor- slipping or being "captured" by politicians or mation exchange to more substantive engagement other interest groups. Users may seek participation in utility management. in utility governance, for instance through mem- bership of oversight boards. Mature utilities can Strong leadership from the top, which respects maintain users' confidence through tools, such as and is able to mobilize the engagement of the utility notice periods for public comment on proposed staff, is needed to embed accountability tools effec- investments or changes in policy or tariffs, that tively in a utility's day-to-day operations. keep the door open for their participation but are This said, efforts to achieve effective account- dormant for most of the time. Surveys and the ability should not be delayed until the conditions WATER P-NOTES seem right. Energetic application of the tools de- provision of cost effective, reliable and safe water scribed here can itself help to transform the broader supply and household sanitation, needs to be kept environment. That outcome, just as much as the at the forefront. The Water Sector Board Practitioner Notes (P-Notes) series is published by the Water Sector Board of the Sustainable Development Network of the World Bank Group. P-Notes are available online at www.worldbank.org/water. P-Notes are a synopsis of larger World Bank documents in the water sector. THE WORLD BANK | 1818 H Street, NW | Washington, DC 20433 www.worldbank.org/water | whelpdesk@worldbank.org