WaterReg workshop on benchmarking issues in the water industry
On 31 October the WaterReg AG organised a workshop on benchmarking issues in the water industry
Benchmarking methods are now widely used in the energy sector. This is not yet the case in the water sector, where regulation procedures are less developed compared to the energy sector (notable exceptions are UK and Denmark where such methods are used to set up price review). It raises the question of what if incentive regulation on the basis of benchmarking would be largely introduced in the water sector?
The workshop identified and came back on several methodological issues and applied benchmarking methods to several set of available water data set concerning France, Italy and Eastern European countries.
Results are promising. However they suggest that if incentive regulation is to be introduced in the water sector with regulators using benchmarking methods without any cautious to establish price review, this would lead to regulatory risks that are not to be underestimated. Our main conclusion is that efforts should be made on collecting more exhaustive set of data, if possible the same set of data in all European countries that are interested in such technics for regulation. The creation of a future network of regulators in the water sector would be a way to coordinate such efforts in an efficient way.
Download the speakers’ presentations from our website