The True Cost of Water is an approach developed by Veolia Water that combines traditional CAPEX and OPEX calculations with analysis of water risks and their financial implications.The True Cost of Water takes into account:
- Direct water costs: capital & operational expenditures for water infrastructure.
- Indirect water costs: existing costs that are usually not attributed to water, such as water-related legal costs.
- Financial implications of water risks: unanticipated costs arising during the lifetime of a plant.
These elements are organized into four categories: operational, such as water shortages; financial, such as an increase in the cost of capital; regulatory, such as an obligation to meet environmental standards; and reputational, such as temporary loss of license to operate as a result of local pressure