CHARACTERIZING THE FINANCIAL IMPACTS OF FLOODS AND DROUGHTS ON BRAZILIAN WATER UTILITIES

Código

XXVI-SBRH0909

Autores

Greicelene Jesus Da Silva, Andrea Cominola, Marcos Roberto Benso, Eduardo Mário Mendiondo, Heidi Kreibich

Tema

I - Desastres e Emergência Climática

Resumo

Damage assessments supply crucial information to decision-making and implementing disaster risk reduction strategies in the face of extreme events. Drought events can directly impact water availability and provoke water shortages for water users, imposing revenue shortfalls on water utilities and economic restrictions on water management. On the other hand, floods frequently impact water supply infrastructure assets, disrupting water supply. However, the lack of memory of the impact often makes it difficult to include the past impacts in financial analysis. The implementation of disaster risk measures requires a satisfactory characterization of the impacts and losses suffered by the water supply sector. Therefore, this study evaluated the impacts of droughts and floods on Brazilian water utilities through a nationwide electronic survey. It examined revenue losses, infrastructure repair costs, service interruptions, and the extent of cost recovery under existing regulations. Results reveal significant financial and operational vulnerabilities, with limited recovery of losses from major droughts and floods. These findings point to the urgent need for stronger financial resilience and regulatory support to help utilities manage climate-related risks.