Regulatory Impact Assessment (RIA) of conceptual model of price regulation in water supply

Submitter: Ministry of Industry and Trade of the Czech Republic

Time of Relevance: 09/2014–11/2014

 

Project description: Over the last 25 years, regulations in water supply have steadily developed. In the 1990s, inter alia, waterworks in the Czech Republic were privatised, approved by City Assemblies. Consequently, 5,900 water management companies and approximately 2,500 operators of various sizes, governance model and ownership structure were founded and currently act in the market. From the standpoint of individual municipalities, development characterized by significant heterogeneity can be observed. In many cases, the infrastructure is underfostered and even the control role of authorities, owners and operators are not sufficient. Within the Regulatory Impact Assessment, two different scenarios and the current state of regulation were examined. The costs of proposed scenarios and their benefits were examined during the RIA performance. Considering all identified problems of the current situation and assessed proposal of their solution, a new alternative scenario was recommended. This scenario reinforces the Ministry of Agriculture´s role as well as cooperation with other departments, Government Office, Union of Towns and Municipalities, accomplished by establishment of a Cooperation Council. The aim is to achieve the sustainability of Water main and Sewerage systems infractructure, creating sufficient reserves for continuous renewal of Water main and Sewerage systems, and ensuring high-quality, smooth and reliable supply of drinking water for customers and wastewater treatment at reasonable prices.

 

Contact person: Ondřej Vojáček, vojacek (at) ireas.cz, Jan Macháč, machac (at) ireas.cz