Menu Expand
Regulation of Water and Wastewater Services

Regulation of Water and Wastewater Services

Rui Cunha Marques

(2010)

Additional Information

Book Details

Abstract

This book, published in collaboration with ERSAR, presents a unique account of governance and regulatory methods used by different countries, states and municipalities that will help regulators and governments all over the world to improve their regulatory approaches. It is the first book to compile such an amount of data about regulatory processes of a wide number of countries from the five continents. 
It discusses how the characteristics of water and wastewater services call for regulation and how different countries apply distinct regulatory methods. By showing 18 country case-studies, the book offers an interesting perspective as the regulatory models adopted vary immensely depending on geographical location, nature and strength of institutions and governments, political ideology, features and level of development of the countries. In addition, it provides examples of best practices that may be important for policy-makers to enhance the regulatory processes adopted in each country. It looks closely at rules imposed by state and local governments concerning regulatory issues and how they are being applied. 
Regulation of Water and Wastewater Services covers the fundamental and practical concepts and issues regarding the regulation of water and wastewater services. It describes and compares the regulatory methods adopted in several countries and provides a global overview on regulation. There is detailed coverage of topics such as quality of service regulation, economic regulation and public service obligations. This book is suitable for regulators, academic researchers and students, consultants, operators and managers, policy-makers and other stakeholders.   
Visit the IWA WaterWiki to read and share material related to this title: http://www.iwawaterwiki.org/xwiki/bin/view/Articles/RegulationofWaterandWastewaterServicesAninternationalcomparison
Author: Rui Cunha Marques, Center of Urban and Regional Systems (CESUR), Instituto Superior Tecnico, Technical University of Lisbon in collaboration with the Portuguese Water and Waste Services Regulation Authority (ERSAR) 

Table of Contents

Section Title Page Action Price
Half title 1
Title 3
Copyright 4
Contents 5
Notes about the author and contributors 9
Author 9
Acknowledgements 11
Acronyms 13
Foreword 21
Preface 23
Part 1 The regulation of drinking water and wastewater services 25
1.1 CHARACTERISTICS OF WATER UTILITIES 25
1.2 THE NEED FOR REGULATION AND ITS OBJECTIVES 27
1.3 MODELS OF ORGANIZATION IN THE WATER SECTOR 31
1.4 PUBLIC SERVICE OBLIGATIONS 35
1.5 REGULATING THE QUALITY OF SERVICE 37
1.5.1 General considerations 37
1.5.2 Approaches to regulation 38
1.5.3 Sunshine regulation 38
1.5.4 The potential of benchmarking 39
1.6 ECONOMIC REGULATION 40
1.6.1 General considerations 40
1.6.2 Rate-of-return regulation 41
1.6.3 Regulation based on performance incentives 42
Part 2: Regulation case studies 47
2.1 AUSTRALIA 47
2.1.1 Historical background 47
2.1.2 Legal and institutional framework 48
2.1.2.1 Responsibilities 48
2.1.2.2 Regulation 50
2.1.3 Market structure 51
2.1.3.1 Ownership and management of services 51
2.1.3.2 Players in the sector 51
2.1.3.3 Integration in the sector and services offered 52
2.1.3.4 Numbers for the sector 52
2.1.4 Rules of the game 53
2.1.4.1 Establishment of tariffs 53
2.1.4.2 Quality of service 54
2.1.4.3 Public service obligations 56
2.1.5 Performance 57
2.2 BELGIUM 58
2.2.1 Historical background 58
2.2.2 Legal and institutional framework 60
2.2.2.1 Responsibilities 60
2.2.2.2 Regulation 61
2.2.3 Market structure 62
2.2.3.1 Ownership and management of the services 62
2.2.3.2 Players in the sector 62
2.2.3.3 Integration of the sector and services provided 64
2.2.3.4 Numbers for the sector 64
2.2.4 Rules of the game 64
2.2.4.1 Tariff setting 64
2.2.4.2 Quality of service 66
2.2.4.3 Public service obligations 67
2.2.5 Performance 68
2.3 BRAZIL 69
2.3.1 Historical background 69
2.3.2 Legal and institutional framework 71
2.3.2.1 Responsibilities 71
2.3.2.2 Regulation 72
2.3.3 Market structure 74
2.3.3.1 Ownership and management of services 74
2.3.3.2 Players in the sector 74
2.3.3.3 Integration in the sector and services provided 75
2.3.3.4 Numbers for the sector 75
2.3.4 Rules of the game 76
2.3.4.1 Tariff setting 76
2.3.4.2 Quality of service 77
2.3.4.3 Public service obligations 79
2.3.5 Performance 79
2.4 CHILE 80
2.4.1 Historical background 80
2.4.2 Legal and institutional framework 81
2.4.2.1 Responsibilities 81
2.4.2.2 Regulation 81
2.4.3 Market structure 82
2.4.3.1 Ownership and management of services 82
2.4.3.2 Players in the sector 83
2.4.3.3 Integration of the sector and services provided 84
2.4.3.4 Numbers for the secto 84
2.4.4 Rules of the game 85
2.4.4.1 Tariff setting 85
2.4.4.2 Quality of service 87
2.4.4.3 Public service obligations 88
2.4.5 Performance 89
2.5 COLOMBIA 90
2.5.1 Historical background 90
2.5.2 Legal and institutional framework 92
2.5.2.1 Responsibilities 92
2.5.2.2 Regulation 93
2.5.3 Market structure 93
2.5.3.1 Ownership and management of services 93
2.5.3.2 Players in the sector 93
2.5.3.3 Integration of the sector and services provided 94
2.5.3.4 Numbers for the sector 95
2.5.4 Rules of the game 96
2.5.4.1 Tariff setting 96
2.5.4.2 Quality of service 96
2.5.4.3 Public service obligations 98
2.5.5 Performance 98
2.6 COSTA RICA 99
2.6.1 Historical background 99
2.6.2 Legal and institutional framework 100
2.6.2.1 Responsibilities 100
2.6.2.2 Regulation 101
2.6.3 Market structure 101
2.6.3.1 Ownership and management of services 101
2.6.3.2 Players in the sector 101
2.6.3.3 Integration of the sector and services provided 102
2.6.3.4 Numbers for the sector 102
2.6.4 Rules of the game 103
2.6.4.1 Tariff setting 103
2.6.4.2 Quality of service 104
2.6.4.3 Public service obligations 105
2.6.5 Performance 105
2.7 FRANCE 105
2.7.1 Historical background 105
2.7.2 Legal and institutional framework 106
2.7.2.1 Responsibilities 106
2.7.2.2 Regulation 108
2.7.3 Market structure 109
2.7.3.1 Ownership and management of services 109
2.7.3.2 Players in the sector 109
2.7.3.3 Integration of the sector and services provided 110
2.7.3.4 Numbers for the sector 110
2.7.4 Rules of the game 111
2.7.4.1 Tariff setting 111
2.7.4.2 Quality of service 114
2.7.4.3 Public service obligations 114
2.7.5 Performance 115
2.8 INDONESIA 116
2.8.1 Historical background 116
2.8.2 Legal and institutional framework 117
2.8.2.1 Responsibilities 117
2.8.2.2 Regulation 118
2.8.3 Market structure 119
2.8.3.1 Ownership and management of services 119
2.8.3.2 Players in the sector 119
2.8.3.3 Integration of the sector and services offered 120
2.8.3.4 Numbers for the sector 120
2.8.4 Rules of the game 120
2.8.4.1 Tariff setting 120
2.8.4.2 Quality of service 122
2.8.4.3 Public service obligations 122
2.8.5 Performance 123
2.9 ITALY 123
2.9.1 Historical background 123
2.9.2 Legal and institutional framework 125
2.9.2.1 Responsibilities 125
2.9.2.2 Regulation 127
2.9.3 Market structure 128
2.9.3.1 Ownership and management of services 128
2.9.3.2 Players in the sector 128
2.9.3.3 Integration of the sector and services provided 129
2.9.3.4 Numbers for the sector 129
2.9.4 Rules of the game 129
2.9.4.1 Tariff setting 129
2.9.4.2 Quality of service 131
2.9.4.3 Public service obligations 132
2.9.5 Performance 134
2.10 MOZAMBIQUE 134
2.10.1 Historical background 134
2.10.2 Legal and institutional framework 135
2.10.2.1 Responsibilities 135
2.10.2.2 Regulation 136
2.10.3 Market structure 137
2.10.3.1 Ownership and management of services 137
2.10.3.2 Players in the sector 137
2.10.3.3 Integration of the sector and services provided 137
2.10.3.4 Numbers for the sector 137
2.10.4 Rules of the game 139
2.10.4.1 Tariff setting 139
2.10.4.2 Quality of service 140
2.10.4.3 Public service obligations 140
2.10.5 Performance 140
2.11 PORTUGAL 141
2.11.1 Historical background 141
2.11.2 Legal and institutional framework 142
2.11.2.1 Responsibilities 142
2.11.2.2 Regulation 143
2.11.3 Market structure 145
2.11.3.1 Ownership and management of services 145
2.11.3.2 Players in the sector 145
2.11.3.3 Integration of the sector and services provided 147
2.11.3.4 Numbers for the sector 147
2.11.4 Rules of the game 148
2.11.4.1 Tariff setting 148
2.11.4.2 Quality of service 149
2.11.4.3 Public service obligations 150
2.11.5 Performance 153
2.12 ROMANIA 153
2.12.1 Historical background 153
2.12.2 Legal and institutional framework 154
2.12.2.1 Responsibilities 154
2.12.2.2 Regulation 155
2.12.3 Market structure 156
2.12.3.1 Ownership and management of services 156
2.12.3.2 Players in the sector 156
2.12.3.3 Integration of the sector and services provided 156
2.12.3.4 Numbers for the sector 156
2.12.4 Rules of the game 157
2.12.4.1 Tariff setting 157
2.12.4.2 Quality of service 157
2.12.4.3 Public service obligations 158
2.12.5 Performance 159
2.13 SINGAPORE 159
2.13.1 Historical background 159
2.13.2 Legal and institutional framework 160
2.13.2.1 Responsibilities 160
2.13.2.2 Regulation 160
2.13.3 Market structure 161
2.13.3.1 Ownership and management of services 161
2.13.3.2 Players in the sector 161
2.13.3.3 Integration of the sector and services provided 161
2.13.3.4 Numbers for the sector 161
2.13.4 Rules of the game 162
2.13.4.1 Tariff setting 162
2.13.4.2 Quality of service 162
2.13.4.3 Public service obligations 163
2.13.5 Performance 163
2.14 SWEDEN 164
2.14.1 Historical background 164
2.14.2 Legal and institutional framework 164
2.14.2.1 Responsibilities 164
2.14.2.2 Regulation 166
2.14.3 Market structure 166
2.14.3.1 Ownership and management of services 166
2.14.3.2 Players in the sector 167
2.14.3.3 Integration and the scope of operator activities 167
2.14.3.4 Numbers for the sector 167
2.14.4 Rules of the game 168
2.14.4.1 Tariff setting 168
2.14.4.2 Quality of service 169
2.14.4.3 Public service obligations 169
2.14.5 Performance 169
2.15 THE NETHERLANDS 169
2.15.1 Historical background 169
2.15.2 Legal and institutional framework 171
2.15.2.1 Responsibilities 171
2.15.2.2 Regulation 173
2.15.3 Market structure 173
2.15.3.1 Ownership and management of services 173
2.15.3.2 Players in the sector 174
2.15.3.3 Integration of the sector and services provided 174
2.15.3.4 Numbers for the sector 174
2.15.4 Rules of the game 174
2.15.4.1 Tariff setting 174
2.15.4.2 Quality of service 176
2.15.4.3 Public service obligations 177
2.15.5 Performance 178
2.16 UNITED KINGDOM 178
2.16.1 Historical background 178
2.16.2 Legal and institutional framework 179
2.16.2.1 Responsibilities 179
2.16.2.2 Regulation 180
2.16.3 Market structure 184
2.16.3.1 Ownership and management of services 184
2.16.3.2 Players in the sector 184
2.16.3.3 Integration of the sector and services provided 186
2.16.3.4 Numbers for the sector 186
2.16.4 Rules of the game 187
2.16.4.1 Tariff setting 187
2.16.4.2 Quality of service 188
2.16.4.3 Public service obligations 191
2.16.5 Performance 192
2.17 UNITED STATES OF AMERICA 193
2.17.1 Historical background 193
2.17.2 Legal and institutional framework 193
2.17.2.1 Responsibilities 193
2.17.2.2 Regulation 195
2.17.3 Market structure 197
2.17.3.1 Ownership and management of services 197
2.17.3.2 Players in the sector 197
2.17.3.3 Integration of the sector and services provided 198
2.17.3.4 Numbers for the sector 198
2.17.4 Rules of the game 199
2.17.4.1 Tariff setting 199
2.17.4.2 Quality of service 200
2.17.4.3 Public service obligations 202
2.17.5 Performance 202
2.18 ZAMBIA 202
2.18.1 Historical background 202
2.18.2 Legal and institutional framework 203
2.18.2.1 Responsibilities 203
2.18.2.2 Regulation 203
2.18.3 Market structure 207
2.18.3.1 Ownership and management of services 207
2.18.3.2 Players in the sector 207
2.18.3.3 Integration of the sector and services provided 208
2.18.3.4 Numbers for the sector 209
2.18.4 Rules of the game 209
2.18.4.1 Tariff setting 209
2.18.4.2 Quality of service 210
2.18.4.3 Public service obligations 210
2.18.5 Performance 210
Part 3 Worldwide water and wastewater services regulation overview 213
3.1 INTRODUCTION 213
3.2 PUBLIC SERVICE OBLIGATIONS 215
3.2.1 General considerations 214
3.2.2 Universal service 216
3.2.3 Accessibility and equality 218
3.2.4 Continuity 220
3.2.5 Special customer protection 221
3.2.6 Protecting customer interests 222
3.2.7 Participation and transparency 223
3.3 QUALITY OF SERVICE REGULATION 224
3.4 ECONOMIC REGULATION 229
3.5 BEST PRACTICES 235
REFERENCES 239
ANNEXES – EXPLORATORY STUDY 243
ANNEX I – QUESTIONNAIRE ABOUT REGULATION 243
QUESTIONNAIRE ‘WATER SERVICES REGULATION’ 243
1. General aspects of the water services 245
2. Scope of the regulatory activity 246
3. General aspects of the regulatory agency 247
4. Organizational aspects of the regulatory agency 248
5. Economic regulation 249
6. Public service obligations and quality of service regulation 251
GUIDELINES FOR COMPLETING THE QUESTIONNAIRE 254
ANNEX II – ANSWERS TO THE QUESTIONNAIRE 257
ARMENIA 257
AUSTRALIA (VICTORIA) 258
AUSTRALIA (WESTERN AUSTRALIA) 259
BARBADOS 260
BELIZE 261
BRAZIL (ALAGOAS) 262
BRAZIL (BRASILIA) 263
BRAZIL (CACHOEIRO DE ITAPEMIRIM) 264
BRAZIL (GOI&graveA;S) 265
BRAZIL (JOINVILLE) 266
BRAZIL (MANAUS) 267
BRAZIL (MAU&graveA;) 268
BRAZIL (NATAL) 269
BRAZIL (PARA&graveI;BA) 270
BRAZIL (PERNAMBUCO) 271
BRAZIL (RIO DE JANEIRO) 272
BRAZIL (RIO GRANDE DO SUL) 273
BRAZIL (STATE OF CEAR&graveA;) 274
CANADA 275
CANADA (PRINCE EDWARD ISLAND) 276
CAPE VERDE 277
CHILE 278
COLOMBIA 279
COSTA RICA 280
CZECH REPUBLIC 281
ENGLAND AND WALES 282
GHANA 283
GREECE 284
HONDURAS 285
INDONESIA 286
ITALY 287
JAMAICA 288
KENYA 289
KOSOVO 290
LITHUANIA 291
MEXICO 292
MOZAMBIQUE 293
NIGER 294
NORTHERN IRELAND 295
PANAMA 296
PAPUA NEW GUINEA 297
PERU 298
PHILIPPINES 299
PORTUGAL 300
REPUBLIC OF IRELAND 301
SCOTLAND 302
SLOVAK REPUBLIC 303
TANZANIA 304
THE NETHERLANDS 305
TRINIDAD AND TOBAGO 306
URUGUAY 307
USA (ARKANSAS) 308
USA (CALIFORNIA) 309
USA (FLORIDA) 310
USA (INDIANA) 311
USA (MONTANA) 312
USA (TENNESSEE) 313
USA (WEST VIRGINIA) 314
USA (WISCONSIN) 315
ZAMBIA 316
ANNEX III – REGULATORS’ CONTACTS 317