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Book Details
Abstract
The public water supply, urban wastewater and urban waste management services are essential to the well-being of citizens, public health and economic activities. These are generally provided under natural or legal monopoly, so there is no incentive for utilities to search for greater efficiency and effectiveness and as such there is an increasing prevalence of such risks for users. For these reasons, society can significantly benefit from the existence of regulatory intervention capable of introducing greater balance in the relationship between utilities and their users.
The Regulation of Water and Waste Services: An Integrated Approach (Rita-Ersar) presents a practical integrated regulatory approach to these water and waste services. This approach is called the ARIT-ERSAR model and it is capable of contributing to the promotion of access by citizens to these services that is tending towards the universal. These services are provided with suitable quality by utilities at socially acceptable prices and with an acceptable level of risk.
This approach consists of a regulation model with two major areas of intervention: structural regulation of the sector and regulation of the performance of the utilities. The components of structural regulation are contributions to organisation, legislation, information and sectoral capacity building. The performance regulation of utilities consists of legal and contractual regulation, economic regulation, quality of service regulation, drinking water quality regulation and user interface regulation.
Author: Jaime Melo Baptista, Chairperson of the Water and Waste Services Regulatory Authority, ERSAR, Portugal
Table of Contents
| Section Title | Page | Action | Price |
|---|---|---|---|
| Cover\r | Cover | ||
| Contents | v | ||
| List of figures | xi | ||
| Foreword from an international perspective | xiii | ||
| Foreword from a national perspective | xv | ||
| Author’s note | xix | ||
| Acknowledgements | xxi | ||
| About the author | xxv | ||
| Chapter 1:\rIntroduction | 1 | ||
| Chapter 2:\rWater and waste services | 5 | ||
| 2.1 Introductory Note | 5 | ||
| 2.2 Obligations for Water and Waste Public Services | 5 | ||
| 2.3 Characteristics of the Water and Waste Services | 8 | ||
| 2.4 Stakeholders in the Water and Waste Services Sectors | 11 | ||
| 2.5 Necessary Systems for Water and Waste Services | 13 | ||
| 2.6 Linking the Services with Water Resources and the Environment | 19 | ||
| 2.7 Challenges for Water and Waste Services | 20 | ||
| 2.8 Rights of Water and Waste Services Users | 27 | ||
| 2.9 Summary | 29 | ||
| Chapter 3:\rPublic policies for water and waste services | 31 | ||
| 3.1 Introductory Note | 31 | ||
| 3.2 International Framework | 31 | ||
| 3.3 Public Policy Components | 32 | ||
| 3.3.1 Overview | 32 | ||
| 3.3.2 Adoption of strategic plans for the sectors | 34 | ||
| 3.3.3 Definition of the legislative framework | 35 | ||
| 3.3.4 Definition of the institutional framework | 35 | ||
| 3.3.5 Definition of the governance models for the services | 35 | ||
| 3.3.6 Definition of the access targets and the quality of service goals | 36 | ||
| 3.3.7 Definition of the tariff and tax policy | 36 | ||
| 3.3.8 Provision and management of the financial resources | 36 | ||
| 3.3.9 Construction of the infrastructure | 38 | ||
| 3.3.10 Improving the structural and operational efficiency | 38 | ||
| 3.3.11 Human resource capacity building | 38 | ||
| 3.3.12 Promotion of research and development | 39 | ||
| 3.3.13 Development of the economic activity | 39 | ||
| 3.3.14 Introduction of competition | 39 | ||
| 3.3.15 Protection, awareness and involvement of the users | 39 | ||
| 3.3.16 Provision of information | 40 | ||
| 3.4 Role of Regulation in Public Policies | 40 | ||
| 3.5 Summary | 40 | ||
| Chapter 4:\rSetting up a regulatory authority | 41 | ||
| 4.1 Introductory Note | 41 | ||
| 4.2 Need for Regulation of Services | 41 | ||
| 4.3 Regulation Objectives | 42 | ||
| 4.4 Regulatory Mission and Mandate | 43 | ||
| 4.5 Characteristics of the Regulatory Authority | 43 | ||
| 4.5.1 Overview | 43 | ||
| 4.5.2 Regulatory principles | 44 | ||
| 4.5.3 Regulatory independence | 44 | ||
| 4.5.4 Regulatory duties | 48 | ||
| 4.5.5 Regulatory powers | 48 | ||
| 4.5.6 Regulatory scope | 52 | ||
| 4.5.7 Public disclosure of accounts | 52 | ||
| 4.6 Organisational Structure of the Regulatory Authority | 55 | ||
| 4.6.1 Overview | 55 | ||
| 4.6.2 Management body | 55 | ||
| 4.6.3 Advisory body | 57 | ||
| 4.6.4 Supervisory body | 57 | ||
| 4.6.5 Organisational model | 58 | ||
| 4.7 Resources of the Regulatory Authority | 58 | ||
| 4.7.1 Overview | 58 | ||
| 4.7.2 Human resources | 58 | ||
| 4.7.3 Financial resources | 59 | ||
| 4.7.4 Physical and technological resources | 60 | ||
| 4.8 Summary | 60 | ||
| Chapter 5:\rIntegrated regulatory approach | 61 | ||
| 5.1 Introductory Note | 61 | ||
| 5.2 Integrated Approach to Regulation | 61 | ||
| 5.3 Structural Regulation of the Sectors | 63 | ||
| 5.3.1 Overview | 63 | ||
| 5.3.2 Regulatory contribution to the organisation of the sectors | 63 | ||
| 5.3.3 Regulatory contribution to the legislation of the sectors | 63 | ||
| 5.3.4 Regulatory contribution to the information of the sectors | 64 | ||
| 5.3.5 Regulatory contribution to the capacity building of the sectors | 64 | ||
| 5.4 Behavioural Regulation of the Utilities | 64 | ||
| 5.4.1 Overview | 64 | ||
| 5.4.2 Legal and contractual regulation | 65 | ||
| 5.4.3 Economic regulation | 65 | ||
| 5.4.4 Quality of service regulation | 65 | ||
| 5.4.5 Drinking water quality regulation | 65 | ||
| 5.4.6 User interface regulation | 66 | ||
| 5.5 RITA-ERSAR Regulation Model | 66 | ||
| 5.6 Summary | 67 | ||
| Chapter 6:\rRegulatory contribution to the organisation of the sectors | 69 | ||
| 6.1 Introductory Note | 69 | ||
| 6.2 Regulatory Goals | 69 | ||
| 6.3 Regulatory Activities and Procedures | 70 | ||
| 6.4 Regulatory Instruments | 71 | ||
| 6.5 Regulatory Synergies | 72 | ||
| 6.6 Summary | 72 | ||
| Chapter 7:\rRegulatory contribution to the legislation of the sectors | 73 | ||
| 7.1 Introductory Note | 73 | ||
| 7.2 Regulatory Goals | 73 | ||
| 7.3 Regulatory Activities and Procedures | 73 | ||
| 7.4 Regulatory Instruments | 76 | ||
| 7.5 Regulatory Synergies | 83 | ||
| 7.6 Summary | 83 | ||
| Chapter 8:\rRegulatory contribution to the information of the sectors | 85 | ||
| 8.1 Introductory Note | 85 | ||
| 8.2 Regulatory Goals | 85 | ||
| 8.3 Regulatory Activities and Procedures | 85 | ||
| 8.4 Regulatory Instruments | 88 | ||
| 8.5 Regulatory Information System | 89 | ||
| 8.5.1 Overview | 89 | ||
| 8.5.2 External modules of the information system | 90 | ||
| 8.5.3 Internal information system modules | 93 | ||
| 8.5.4 Regulator’s website | 94 | ||
| 8.5.5 Advantages of the regulatory information system | 94 | ||
| 8.6 Regulatory Synergies | 97 | ||
| 8.7 Summary | 97 | ||
| Chapter 9:\rRegulatory contribution to the capacity building of the sectors | 99 | ||
| 9.1 Introductory Note | 99 | ||
| 9.2 Regulatory Goals | 99 | ||
| 9.3 Regulatory Activities and Procedures | 99 | ||
| 9.4 Regulatory Instruments | 100 | ||
| 9.5 Regulatory Synergies | 103 | ||
| 9.6 Summary | 103 | ||
| Chapter 10:\rLegal and contractual regulation | 105 | ||
| 10.1 Introductory Note | 105 | ||
| 10.2 Regulatory Objectives | 105 | ||
| 10.3 Regulatory Activities and Procedures | 105 | ||
| 10.4 Regulatory Instruments | 109 | ||
| 10.5 Regulatory Synergies | 111 | ||
| 10.6 Summary | 111 | ||
| Chapter 11:\rEconomic regulation | 113 | ||
| 11.1 Introductory Note | 113 | ||
| 11.2 Regulatory Goals | 113 | ||
| 11.3 Regulatory Activities and Procedures | 114 | ||
| 11.4 Regulatory Instruments | 125 | ||
| 11.5 Tariff System | 127 | ||
| 11.5.1 Overview | 127 | ||
| 11.5.2 General criteria for setting the tariff | 127 | ||
| 11.5.3 Criteria for establishing the tariff structure | 131 | ||
| 11.5.4 Criteria for invoicing services | 134 | ||
| 11.5.5 Economic and financial assessment indicators | 137 | ||
| 11.5.6 Data necessary for assessment | 137 | ||
| 11.5.7 Reference values | 138 | ||
| 11.6 Regulatory Synergies | 138 | ||
| 11.7 Summary | 138 | ||
| Chapter 12:\rQuality of service regulation | 139 | ||
| 12.1 Introductory Note | 139 | ||
| 12.2 Regulatory Goals | 139 | ||
| 12.3 Regulatory Activities and Procedures | 142 | ||
| 12.4 Regulatory Instruments | 144 | ||
| 12.5 Quality of Service Assessment System | 147 | ||
| 12.5.1 Overview | 147 | ||
| 12.5.2 Quality of service indicators | 149 | ||
| 12.5.3 Data necessary for assessment | 154 | ||
| 12.5.4 Profile of the utility | 161 | ||
| 12.5.5 System profile | 162 | ||
| 12.5.6 Contextual factors | 163 | ||
| 12.5.7 Reference values | 164 | ||
| 12.6 Regulatory Synergies | 175 | ||
| 12.7 Summary | 175 | ||
| Chapter 13:\rDrinking water quality regulation | 177 | ||
| 13.1 Introductory Note | 177 | ||
| 13.2 Regulatory Goals | 177 | ||
| 13.3 Regulatory Activities and Procedures | 178 | ||
| 13.4 Regulatory Instruments | 181 | ||
| 13.5 Drinking Water Quality Assessment System | 184 | ||
| 13.5.1 Overview | 184 | ||
| 13.5.2 Water quality indicators | 185 | ||
| 13.5.3 Water sampling frequency | 187 | ||
| 13.5.4 Reference values | 189 | ||
| 13.5.5 Water quality aggregate indicator | 191 | ||
| 13.6 Regulatory Synergies | 191 | ||
| 13.7 Summary | 191 | ||
| Chapter 14:\rUser interface regulation | 193 | ||
| 14.1 Introductory Note | 193 | ||
| 14.2 Regulatory Goals | 193 | ||
| 14.3 Regulatory Activities and Procedures | 193 | ||
| 14.4 Regulatory Instruments | 195 | ||
| 14.5 Regulatory Synergies | 197 | ||
| 14.6 Summary | 197 | ||
| Chapter 15:\rArticulation with third party entities | 199 | ||
| 15.1 Introductory Note | 199 | ||
| 15.2 Articulation with the Sectors’ Stakeholders | 199 | ||
| 15.3 Articulation with the Environmental Authority | 200 | ||
| 15.4 Articulation with the Water Resources Authority | 201 | ||
| 15.5 Articulation with the Waste Authority | 202 | ||
| 15.6 Articulation with the Public Health Authority | 203 | ||
| 15.7 Articulation with the Consumer Protection Authority | 203 | ||
| 15.8 Articulation with the Competition Authority | 204 | ||
| 15.9 Cooperation between Regulatory Authorities | 206 | ||
| 15.10 Summary | 212 | ||
| Chapter 16: Conclusions | 213 | ||
| 16.1 Introductory Note | 213 | ||
| 16.2 Water and Waste Services | 213 | ||
| 16.3 Responsibilities of the Political Power | 214 | ||
| 16.4 Responsibilities of Regulatory Authorities | 216 | ||
| 16.5 Responsibilities of the Utilities | 217 | ||
| 16.6 Responsibilities of the Users | 218 | ||
| 16.7 Common Responsibilities | 219 | ||
| 16.8 Final Note | 219 | ||
| Annex A:\rThe evolution of water and waste services in Portugal in the last two decades | 221 | ||
| 1 Introductory Note | 221 | ||
| 2 The New Public Policy for Water and Waste Services | 221 | ||
| 2.1 Overview | 221 | ||
| 2.2 Adoption of strategic plans for the sectors | 222 | ||
| 2.3 Definition of the legislative framework | 223 | ||
| 2.4 Definition of the institutional framework | 223 | ||
| 2.5 Definition of the governance models for the services | 224 | ||
| 2.6 Definition of the access targets and the quality of service goals | 224 | ||
| 2.7 Definition of the tariff and tax policy | 224 | ||
| 2.8 Provision and management of financial resources | 225 | ||
| 2.9 Construction of the infrastructure | 225 | ||
| 2.10 Improving the structural and operational efficiency | 226 | ||
| 2.11 Human resource capacity building | 226 | ||
| 2.12 Promotion of research and development | 227 | ||
| 2.13 Development of the economic sector | 227 | ||
| 2.14 Introduction of competition | 227 | ||
| 2.15 Protection, awareness and involvement of the users | 227 | ||
| 2.16 Provision of information | 228 | ||
| 3 Results of the Implementation of this Policy | 228 | ||
| 3.1 Overview | 228 | ||
| 3.2 Evolution of the public water supply policies | 228 | ||
| 3.3 Evolution of waste water services | 230 | ||
| 3.4 Evolution of solid waste management services | 231 | ||
| 3.5 Impact on the environmental quality | 231 | ||
| 3.6 Impact on public health | 234 | ||
| 3.7 Impact of compliance with human rights in access to water and sanitation | 234 | ||
| 4 Conclusion | 236 | ||
| Annex B:\rThe evolution of water and waste services regulation in Portugal | 237 | ||
| 1 Introductory Note | 237 | ||
| 2 Evolution of the Regulation Authority | 237 | ||
| 3 Board of Directors | 241 | ||
| 4 Advisory Board | 242 | ||
| 5 Sole Auditor | 242 | ||
| 6 Conclusion | 243 | ||
| Annex C:\rThe bylaw of the Water and Waste Services Regulation Authority (ERSAR) | 245 | ||
| Index | 267 |