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Performance Assessment Using Key Performance Indicators (KPIs) for Water Utilities: A Primer

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  • Sanford V. Berg

    (Economics, University of Florida, Gainesville, United States2Public Utility Research Center, University of Florida, Gainesville, United States)

Abstract

Key performance indicators (KPIs) are widely recognized as a basis for evaluating water utility operations in developing countries and for designing both regulatory and managerial incentives that improve performance. A number of methodolgies can be used for assessing performance, with KPIs and overall performance indicators serving as more comprehensible and potentially more comprehensive than more technical empirical benchmarking studies. Data initiatives in low and middle income countries require resources that could be used for other activities with more immediate payoffs. However, regulatory oversight requires data analysis of trends, current performance, and realistic targets. Quantitative studies can provide clues regarding the extent of economies of scale, scope, and density, but policy-makers need much more detail and specificity than most scholars provide. Here, the focus is on information systems that provide accurate, reliable, and relevant data. KPIs represent the foundation for those developing, implementing, and responding to public policy — incentivizing water utilities in developing (and developed) countries to contain costs, improve service quality, and expand water access over the long run.

Suggested Citation

  • Sanford V. Berg, 2020. "Performance Assessment Using Key Performance Indicators (KPIs) for Water Utilities: A Primer," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 6(02), pages 1-25, April.
    • Handle: RePEc:wsi:wepxxx:v:06:y:2020:i:02:n:s2382624x20500010
    DOI: 10.1142/S2382624X20500010
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    References listed on IDEAS

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    1. Corton, Maria Luisa, 2003. "Benchmarking in the Latin American water sector: the case of Peru," Utilities Policy, Elsevier, vol. 11(3), pages 133-142, September.
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    3. John G. Lynch & Thomas E. Buzas & Sanford V. Berg, 1994. "Regulatory Measurement and Evaluation of Telephone Service Quality," Management Science, INFORMS, vol. 40(2), pages 169-194, February.
    4. Daniel W. Bromley & Glen Anderson, 2018. "Does Water Governance Matter?," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 4(03), pages 1-32, July.
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    2. Victor O. Ojo & M. Sohail, 2023. "Assessing the Performance of State Water Utilities in Nigeria: Towards Achieving the Sustainable Development Goal on Drinking Water," Sustainability, MDPI, vol. 16(1), pages 1-23, December.

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