1. Sanctions and allowances – Based on examples of some Hungarian regions
MunServNet - Component E “Public awareness raising , Good Governance and organizational structure” 8-9 May 2006, Trikala
Sanctions and allowances –
Techniques for the persuasion of inhabitants in the field of sewage canalization in Hungary
Based on examples of some Hungarian regions
Dr. Zoltán Karácsonyi
University of Debrecen, Hungary
Centre for Environmental Management and Policy

2. 1. Current situation of sewage canalization in Hungary
*2005 and 2006: estimated data!

3. 2. Regional overview

4. 3. Actors and planning Actors Water Works (cities)
Water Management Associations (rural areas)
Planning
National Waste Water Drainage and Treatment Realization Program in harmony with the legal regulations of the European Communities
It aims at the rate of inhabitants living in settlements supplied with sewage network to be 91% by 2015
It specifies until 2015 the schedule of the drainage and treatment methods for settlements larger than 2000 IE (inhabitant equivalence) led by the public sewage system – it concerns 1732 settlements
In case of sensitive receiver areas (3 greatest lakes in Hungary) for settlements larger than IE the removal of nitrogen and phosphorous compounds has to be solved
Concerning settlements which can not be supplied economically with public waste water drainage and treating utility (round of settlements defined in a separate governmental decree), the government decided on the Individual Waste Water Treatment National Realization Program
Individual waste water treatment: application of establishments serving waste water treatment for 1-25 IE

5. 4. Western Transdanubian Region
70 villages from the 257 do not have sewage network
in spite of the existence of built waste water collecting system, due to the costs of connecting to this system, owners postpone the decision
Although users of settling tanks are inspired by the environment load fee, besides more and other kinds of motivation by municipalities are also needed
Example 1: strict rules – obligation of owners by local decree
In case of owners who ignore this decree, the local government gets the work done and costs will be exacted later
Example 2: village leaders prefer support instead of dictate
Local government advanced the costs – by credit - for all owners (about 600 EUR/household) and this sum will be sunk by owners in 7 years without interest
Both solutions seem to be effective: in the first village 94 households are connected from the 131, and in the latter case 310 households are connected from the 420

6. 5. Southern Transdanubian Region (1)
Municipalities use both allowances and sanctions
Example 1: a city with the rate of 95% of connected households
those who connected to the network immediately had to pay about 360 EUR as public utility financial contribution
owners being in a socially disadvantageous situation could sink this sum in two years interest-free
those who want to connect now have to pay more than 470 EUR
following the total building of the sewage network the local government applied strict sanctions against those who haven’t been connecting to the network for 5-10 years
first step: official notice - following this, resisting inhabitants have been fined by the local government for a sum of 400 EUR based on a former Governmental Decree
in case of inhabitants not paying, their property has been mortgaged with this sum
if this step was still not enough, the municipality connected the household to the network, but the costs (360 EUR) have been claimed to the owner
at the same time, there’s a chance for those being in a socially disadvantageous situation: a 2-months public work instead of paying this sum - 83 inhabitants chose this latter solution instead of paying the costs

7. 5. Southern Transdanubian Region (2)
Example 2: the centre of the Southern Transdanubian Region (city of Pécs)
8500 households can connect to the sewage network by the end of 2007 by ISPA (Instrument for Structural Policies for Pre-Accession) support (about 28,8 million EUR)
the cost is about 600 EUR per household
in case of forming an association this sum can be paid in 10 years interest-free
so in this city all households will probably connect to the network, if not then the notary can oblige owners
Example 3: a village with the population of 1400 – this means 480 properties
the sewage network has been finished three years ago
property owners had to pay about 520 EUR for connecting
those connecting in the first half year: only 350 EUR (80 owners exploited this possibility
five employees of the local government visited continuously the inhabitants to persuade them for joining the building financing saving bank: those who join this opportunity are entitled for governmental support and can sink the cost of connecting in 9 years namely about 4 EUR per month so it means totally about 412 EUR
as a result of the above, 380 households from 480 connected to the network
those not joining the system probably will be convinced by the increasing soil load fee

8. 6. North Great Plain Region
Example 1: a settlement of about 6000 inhabitants – meaning about 2200 households
the sewage network will be finished by the end of 2006
property owners who joined the investment in the organization process paid 600 EUR in 2003
recently (2006) 800 EUR has to be paid
it's planned to pay this cost for those denoting their intention for connecting before putting the network in operation - regulation about this will be developed later
local government: to motivate people with allowances and with sanctions
Example 2: those intending to connect to the network form Water Public Works Associations - based on this, they are entitled to participate in saving action
they do not have to pay the cost (520 EUR) simultaneously but they can get a credit for five years
this solution is under development in the city of Debrecen
those connecting to the network get allowances like an interest-free credit of 160 EUR for a year and besides, they pay only the 50% of the sewage fee for six months
another interesting point of the situation in Debrecen: those not connected to the network have to pay a higher fee as they have to pay for the transportation of waste water to the waste water plant from the household settling tank
as a conclusion of the above, the rate of households connected to the network increased to 80% from 70%