best practices for water services tariff structures
TRANSCRIPT
Best practices in the definition of water services tariff structures
Cristina Landeiro Rodrigues
9th IWA World Water Congress & Exhibition
Lisbon, September 2014
Overview:
1. Water Services’ Regulation Water Services’ Principles
Regulation of Water Services in Portugal
ERSAR’s Tariff Guidelines
2. Compliance Questionnaires Compliance Questionnaires
Results
3. Conclusions and Next Steps
Best practices in the definition of water services tariff structures
Best practices in the definition of water services tariff structures
Water management systems
Economic Regulation
Water services’ principles
WASTEWATER
WATER
1. Water Services’ Regulation
Best practices in the definition of water services tariff structures
1. Water Services’ Regulation
Water management systems
Natural monopolies
Abuses of dominant position
X inefficiency
Asymmetric information
Economic efficiency
Best practices in the definition of water services tariff structures
1. Water Services’ Regulation
Water services’ principles
Universal access (PEAASAR II: 95% W & 90% WW)
Quality (Indicator AA04 – Safe water)
Continuity (Indicator AA03 - Supply failures)
Affordability (Indicator AA06 – Affordability)
Equity (Special tariff schemes for low income families
and large families)
Best practices in the definition of water services tariff structures
1. Water Services’ Regulation
Operates at national level (mainland only)
Regulates all operators (bulk & retail; concessions,
delegations and municipalities)
Has administrative and financial independence
(6M€/year – 0,7% sector’s turnover; 68 employees)
Articulates with other authorities (APA, AdC, DGS, etc.)
Promotes stakeholders’ participation (Advisory board)
Best practices in the definition of water services tariff structures
1. Water Services’ Regulation
ER
SA
R’s
Ta
riff G
uid
elin
es
Service Tariff Domestic end users Observations
Wa
ter
Fixed Two levels
For consumers with a meter exceeding
25 mm the value is equal to the non-
domestic fixed tariff
Variable Four increasing blocks
1.st block =< 5m3
5m3>2.nd block<=15 m3
15m3>3. rd block<=25 m3
4.th block > 25m3
Wa
ste
wa
ter
Fixed One level
Variable Four increasing blocks
90% of the water consumption
Blocks are equal to the ones applied in
the water services
Auxiliary Services
should only be charged when requested or in result
from breach of contract by the end-user
Best practices in the definition of water services tariff structures
2. Compliance Questionnaires
WATER
Best practices in the definition of water services tariff structures
2. Compliance Questionnaires
WASTEWATER
Best practices in the definition of water services tariff structures
2. Compliance Questionnaires
Results for water services
70%
Best practices in the definition of water services tariff structures
2. Compliance Questionnaires
Results for water services
Best practices in the definition of water services tariff structures
2. Compliance Questionnaires
Results for wastewater services
68%
Best practices in the definition of water services tariff structures
2. Compliance Questionnaires
Results for wastewater services
Best practices in the definition of water services tariff structures
3. Conclusions and Next Steps
After 5 years
Need to hasten this process: binding Tariff Code.
New process of tariff setting is being developed:
Operators’ ask ERSAR’s opinion about proposed
tariff
Municipality approves tariffs’
and justifies major dissonances with ERSAR’s opinion
Operators report approved tariffs to
ERSAR
ERSAR conducts audits to assess
tariff’s compliance
In case of a relevant breach of binding rules ERSAR may
impose corrections
Thank you for your attention