Regulation is based on economic theory and is necessary in situations where the market is not able to allocate resources efficiently or fails to maximize social welfare. It is present, therefore, in areas that are of public interest and in specific markets, as the cases of natural monopolies.
The regulation of water supply and sewage services is an important factor in promoting efficiency and optimization of resource uses. It is, therefore, an essential tool in the quest for universal service delivery and the achievement of the SDG 6.
The experiences of regulation of water supply and sewage services in various parts of the world differ in content and degrees of maturation. In developing countries, the discussion is at a more early stage and can benefit from exchanging experiences with countries where regulation is more advanced.
This theme will be addressed in three main aspects, through three sections:
1. Topic 71 – Institutional Models and Regimental Structure:
Session 711 – Regulation and its contribution to SDG 6;
Session 712 – Centralized and Decentralized Models.
2. Topic 72 – Tariff issues:
Session 721 – Determination of the Average Tariff;
Session 722 – Tariff structures (cross subsidies).
* Subsidy Policies; Social tariff; Minimum consumption or membership fee; Firm demand contracts; Differential rates for collection and treatment; Wholesale water; Prepaid water; Seasonal rate; Reuse water.
3. Topic 73 – Training for Regulation:
Session 731 – Regulation and Actors Interface.
* International experience on the process of internalization of the importance of regulation by regulated entities and technical training of regulatory agencies.