Economic regulation of water companies
This paper provides an overview of approaches to the economic regulation of piped water supply and sewerage systems. The discussion emphasizes the particular importance that quality issues take on in water systems relative to any other infrastructure sector. Water quality is obviously important for the consumer of water, but also to others, who may suffer from diseases spread throughout the water system. The paper first asks the question when and why regulation may be needed. This is followed by a review of options to structure water systems, which in turn affects the way regulation operates. The key regulatory rules that may be chosen are then discussed, followed by a brief survey of institutional options for carrying out the regulatory functions. The paper closes with a brief assessment of the implication of regulatory choices for financing of water projects.
|Date of creation:||30 Sep 1996|
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- Brown,Stephen J. & Sibley,David Sumner, 1986. "The Theory of Public Utility Pricing," Cambridge Books, Cambridge University Press, number 9780521314008.
- Emanuel Idelovitch & Klas Ringskog, 1995. "Private Sector Participation in Water Supply and Sanitation in Latin America," Reports _017, World Bank Latin America and the Caribean Region Department.
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