Economic Regulation Of The Water Sector

Competition and Economic Regulation in Water: The Future of the European Water Industry reviews the main developments in economic regulation and competition in the European water industry and considers ways in which economic regulation and competition should be further developed. The book focusses on the best means of regulating or introducing competition into the industry in light of its present structure. Competition and Regulation in Water: The Future of the European Water Industry concentrates on the water industry, however, many of the conclusions are equally applicable also to the wastewater industry. Contents Introduction Water industry fundamentals: the rationale for regulation and the scope for competition A framework for evaluating different models of water industry regulation England & Wales: private ownership and independent regulation France: competition for the market and contract-based regulation Germany: public-private partnerships and multi-sector utilities Developing water sector regulatory frameworks in less developed countries Appendix: The legislative framework for the water industry in England & Wales

'This excellent book makes a major contribution to the literature on regulation in a pro-poor direction for urban water supply. It is extremely relevant for policy-makers striving to achieve the Millennium Development Goal for halving the share of world's population without access to clean and affordable water.' Andrew Nickson, University of Birmingham, UK The aim of this book is to present the potential benefits as well as the challenges of introducing a more formal economic regulatory process into the urban water sector arena in lower-income countries. There is a particular focus upon the impact this may have on the poorest, the informal, slum and shanty dwellers of the rapidly growing cities. Economic regulation, usually introduced in the context of private operation of monopoly water supply, can deliver objectivity and transparency in the price-setting process for public as well as private providers. The book describes and analyses these issues through a consideration of ten country case studies. As a starting point, the current situation for the provision of water and sanitation services for the poorest through non-regulated public providers in India and Uganda is reviewed. Comparative chapters are then presented on Ghana, Philippines, Bolivia, Jordan, Zambia and Indonesia, all with varying degrees of private sector involvement and regulation. Finally the experiences of two richer countries are considered - Chile and England, countries with the longest experience of economic regulation and the 'most privatized' suppliers. In all cases there is a focus on the very necessary role of customer involvement in price-setting and service monitoring and on the role of alternative (private) service providers.

Technical regulation of urban water services: The Portuguese regulatory model of water and wastewater services. An integrated approach; Experiences and conclusions from regulation in England and Wales; Experiences and conclusions from regulation in Australia; Experiences and conclusions from regulation in Denmark; Experiences and conclusions from regulation in Latin America; The German benchmarking experience. An alternative to regulation; The assessment of water services from the point of view of multilateral organizations. The experience of the Inter-American Development Bank (IDB); Regulation in Spain from the perspective of the urban water services; Reasons that justify the regulation of urban water services in Spain; Can a regulator contribute to solve the problems of the urban water cycle in Spain?; Regulatory models. Conclusions

The Water Services Regulation Authority's (Ofwat's) approach to setting price limits for water companies in England and Wales has not resulted in the best possible deal for customers. By consistently overestimating financing costs, Ofwat has allowed companies to make windfall gains which have not been shared in a structured way to ensure customers get a fair deal. Ofwat uses comparisons between water companies to help improve overall efficiency, but acknowledges that it should do more to benchmark companies' costs with other sectors and internationally, to ensure that the amounts customers are charged are minimised. Ofwat should also do more to promote water trading between companies instead of developing expensive new supplies.

Institutional Governance and Regulation of Water Services aims to provide the key elements of policy, governance and regulation necessary for sustainable water and sanitation services. On policy matters, it covers important aspects including separation of policy and delivery, integrated planning, sustainable cost recovery, provisions for the poor, and transparency. Regulation and Regulatory Bodies are presented in their various forms, with discussion of why some form of independent scrutiny is essential for sustainability. The focus is on what works and what does not, based on consideration of basic principles and on case studies in both developing and developed countries. The early chapters discuss the key elements, with later chapters considering how these elements have come together in successful reforms of public sector operations. A chapter is devoted to the successful use of the private sector based on lessons learnt from ‘failures’ of private contracts and the need for the application of sound procurement principles. The current trend is for a public sector model which benefits from business approaches, the so-called corporatised public utility. Experience since the publication of the first edition in 2007 reinforces the importance of the key elements for sustainable water services. This second edition brings the material up to date and with some increased emphasis on public participation in its many forms. It refers to the opportunity for progress provided by the UN Declaration of Water and Sanitation as a Human Right, but only if it is implemented in a practical and sustainable way. Institutional Governance and Regulation of Water Services is aimed at providing an informative source for national and local governments responsible for water policy, for water utility managers, and for students who will be the policy makers of tomorrow. It is a teaching aid for courses on water policy, governance and regulation. About the Author: Michael Rouse is a Distinguished Research Associate at the University of Oxford and manages the Institutional Governance and Regulation module of the University’s MSc Course on Water Science, Policy and Management. He was formerly Head of the Drinking Water Inspectorate in London and has extensive knowledge and experience of water governance and regulation, including all aspects of audit and enforcement, and the governance issues related to both public sector management and privatisation. He has wide knowledge of water technical and operational matters, based on his applied research and development background at the Water Research Centre, where he spent 9 years as Managing Director. Michael has a good understanding of international water matters and advises governments on policy and regulation. He is a Past President of the International Water Association. He is a visiting professor at Tsinghua University in Beijing and at the Shanghai Academy of Social Science. In 2000 he was awarded the CBE (Commander of the British Empire) for his professional services.