In his recent article, CEO Paul O’Callaghan discusses the current state of water pricing, the assignment of a price to renewable and non-renewable water sources, and their correlation to water innovation.
There is a commonly held view among industry observers that “water is undervalued” and “water is underpriced”. Gloomy venture capitalists frequently cite the fact that “water is underpriced” as having the effect of hindering innovation and adoption of new technologies in the water sector (… and, incidentally of course, the ability to make good returns on venture capital investment). If water were properly priced, so goes the logic, then innovation would flourish.
It is worth remembering that the raison d’etre of the water industry is not to provide a vehicle for water technology companies and venture capital investors to make double-digit returns. It is to provide water services in the most efficient manner possible. When a new technology can do this, it has a commercial advantage with the potential to make double-digit returns. But the technologies need to reflect market realities, not the other way around. There is no onus on the water industry to alter its value and pricing systems to facilitate water technology companies and investors.
To read more click on the link below:
Water Pricing is Not the Roadblock to Water Innovation
