Employing the Household Basket Method: A Case Study on Estimating Affordability in Municipal Water Tariff Setting in the Gaza Strip

Ensuring equitable access to clean and safe water is vital for the well-being of communities. However, many households worldwide struggle to afford the cost of water services, posing significant barriers to access and affecting public health and quality of life. This study focuses on affordability estimation for water and wastewater services in the Gaza Strip, considering the ongoing interventions to enhance service reliability and availability. The Gaza Strip faces a severe humanitarian crisis, with limited access to basic services like drinking water and sanitation. The Household Basket Method is employed to estimate affordability, taking into account household expenditure patterns and considering essential needs beyond water services. By calculating the proportion of income households can allocate to water bills without causing financial hardship, this approach enables a nuanced understanding of affordability based on specific socio-economic conditions. The study examines the affordability analysis for all municipalities in Gaza, utilizing both mean and median household expenditures. The findings highlight variations in affordability across municipalities, with some experiencing consistently unaffordable rates. Approximately 70% of municipalities have households whose mean or median expenditures cannot cover the costs of water and wastewater services, indicating financial difficulties for a significant portion of the population. Striking a balance between cost recovery and affordability is crucial, particularly for vulnerable populations. By addressing affordability concerns, municipalities can ensure equitable access to essential water and wastewater services for all community members in the Gaza Strip.