REGULATORY AUTHORITY OF THE WATER SUPPLY AND WASTE … · Key Performance Indicators – objective...
Transcript of REGULATORY AUTHORITY OF THE WATER SUPPLY AND WASTE … · Key Performance Indicators – objective...
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ALBANIAN WRAACHIEVEMENTS AND CHALLENGES
REGULATORY AUTHORITY OF THE WATER SUPPLY ANDWASTE WATER DISPOSAL AND TREATMENT SECTOR
AVNI DERVISHICHAIR
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ALBANIAN WRA FRAMEWORK
WATER REGULATORY AUTHORITY ACTS IN SUCH A
WAY TO FIND A FAIR BALANCE BETWEEN THE
INTERESTS OF CONSUMERS, THE CENTRAL
GOVERNMENT, THE PUBLIC, INVESTORS AND
STAKEHOLDERS IN THE WATER SECTOR.
REGULATOR
UTILITY
CONSUMER
LAW 8102, DATE 28.03.1996
TO ENSURE FOR ALL CUSTOMERS THAT WATERAND SEWERAGE SERVICE PROVIDERS DELIVER THEHIGHEST ACHIEVABLE QUALITY AT A FAIR PRICEAND IN A FINANCIALLY SUSTAINABLE MANNER.
MISSION
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Water and wastewater sector is characterized by long-lived investments with relatively lowshort-run marginal costs, that's why is often considered a natural monopoly.
WHY A REGULATORY AUTHORITY?
Companies face high risks by investing in the water sector. The nature of the assetsmeans that companies are exposed to government intervention.
Regulation is required to ensure that THE MONOPOLY SERVICE PROVIDER DOES NOT
ABUSE ITS POWER by charging too high prices or providing low quality service.
Sound regulation CAN HELP REDUCE UNNECESSARY RISKS faced by utilities
Regulation is a modern form of intervention to protect the public interest that seeks to guarantee a better balance between the utility and the
consumer interests under transparent processes
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REGULATORY GOVERNANCE PRINCIPLES
Role Clarity – clear objectives with clear linked functions and mechanismsto coordinate with other relevant bodies to achieve the desired outcome.
Prevent undue influence and maintain trust – decisions and functionsconducted with the upmost integrity, to ensure that there is confidence inthe regulatory regime.
Decision making and governing body structure – arrangements to ensureeffective functioning, preserve integrity and deliver objectives of itsmandate.
Accountability and transparency – periodically reports on activities and itsoutcome to the legistrature, transparency on the operational policies, aswell as accountability to the regulated entities and public.
Engagement – interaction with stakeholders and measures to avoidregulatory capture and conflict of interest.
Funding – impartial and efficient to achieve its objectives Performance evaluation – awareness on the impacts of actions and
decisions, by evaluating not only regulated entities but also itsperformance
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REGULATORY INSTRUMENTS
SECTOR DEVELOPMENT
• Licensing
• Service Standards
• Policy Recommendations /Feedback
TARIFF REGULATION
• Tariff Setting Guideline(s)
• Business Planning Guideline
INFORMATION &
CONSUMER PROTECTION
• Customer-Utility Service Contract
• Published Information & Awareness Raising
PERFORMANCE
MONITORING
• Annual Utility Performance Reports
• Inspections
• Sector Analysis
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SECTOR DEVELOPMENT - LICENSING
Any physical or legal person dealing with the
collection, distribution, disposal and treatment of
water for public use is required to hold a license
from the Regulatory Authority.
To date WRA is applying:
Four licensing categories:
Category A – Water collection and distribution for public consumption
Category B – Water treatment for public consumption
Category C – Wastewater disposal
Category D – Wastewater treatment
New Application form and Procedure, new Licensing Format
New Terms and Conditions issued with the License approval.
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SECTOR DEVELOPMENT - STANDARDS
WRA is setting standards for WWW Companies in improving the quality ofthe service:
National Water Supply and Sewerage Services Sector StrategyNational objectives in the sector.Some challenging objectives still far from being achieved
Water Supply and Sewerage CodeTechnical standards for market operators developedCurrently at document stage, not yet introduced as obligatory standards
The Integrity CodeGuidance for current and future generations of WRA officials
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TARIFF REGULATION
Tariffs setting process / main instrument to achieve the WRA mission
KPIs set as objectives
when approving a tariff
Sewerage Coverage
Regulator perception
Water coverage
Collection efficiency
Metering ratio
Non revenue water
Staff efficiency
Drinking water quality
Hours of Supply
Energy efficiency
Tariff methodology logic:
New Structure of Tariffs – Variable
tariff introduced besides the Fixed
tariff.
Key Performance Indicators –
objective to be reached for each
utility precondition of the tariff
approval.
A Regulatory Business Planning
Guideline – for multiannual tariffs
3-5 year WWW operator’s business
plan.
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INFORMATION AND CUSTOMER PROTECTION
An up-to-date WRA Website
Public Hearings as part of the Tariff Adjustment
Process
Customer Issues Research
Regular Reporting
Transparency and public accountability are seen as
useful incentives for service improvement
Sharing information is the basis of a fair and transparent regulatory framework the WRA wants to provide
Open Discussions
A mandatory Service Contract
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PERFORMANCE MONITORING
On yearly basis, WRA examines the WWW operators performance by:
Grouping the utilities per water
connections;
Identifying KPIs to evaluate the
financial, operational and customer
service performance;
Defining good and poor performance
boundaries;
Performing analysis of data per each
KPI;
Ranking of the utilities based on
their individual achievements;
Inspections for data verification.
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WATER SECTOR ANALYSIS
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48 5055
2010 2011 2012 2013
39,33
111,06
44,39 55,06
141,66
107,99
Households Private Business Institutions
2010201120122013
Licensed number of operators Average tariffs [Lek/m3]
80,3
50,0
11,1
66,6
93,4
84,2
9,3
63,2
44,6
80,8
51,0
11,5
84,6
113,8
82,0
9,5
67,4
59,0
2010
2011
2012
2013
Total & OM Cost Coverage improved, mainly due to tariff increase / not because of management;
Very slight improvements on other KPIs;
Still problems in coverage area, collection efficiency, continuity of supply and non revenue water
Key Performance Indicators
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WRA COST EFFECTIVENESS
38%
29%
9%
24%
WRA staff according to profession
- 76% professional staff (16)- 24 % supportive staff (5)
Total WS billings WRA regulatory fee
0.72%
Average yearly payment of each customer is 73 lek ( 52 cent)
Annual WRA cost over total billings
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CHALLENGES FOR FUTURE
Sector challenges affecting regulation in water sector:
Restructuring of sector as a result of Territorial Reforms
Capacities of LGUs (shareholders) and Supervisory Board
Accuracy and reliability of data
Effective coordination between key actors
(CG, LGU, Operators, WRA and Parliament)
No clear guideline on investments (master plan)
Lack of incentives for water operators
Lack of management and/or performance contracts or service
agreements between LGUs (shareholders) / operators and WRA and
Shareholder
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THANK YOU!FALEMINDERIT!
REGULATORY AUTHORITY OF THE WATER SUPPLY ANDWASTE WATER DISPOSAL AND TREATMENT SECTOR