Regulatory Governance in the Water Sector
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Ms Anna Pietikainen, OECD
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Regulatory Governance in the Water Sector
- 1. REGULATORY GOVERNANCE IN THE WATER SECTOR Anna Pietikainen Senior Policy Analyst Regulatory Policy Division, Public Governance Directorate
- 2. In-depth work with water regulators • Performance assessment of Ireland’s Commission for Regulation of Utilities (CRU), 2018 and the Environmental Protection Agency (EPA), March 2010 • Monitoring and providing feedback to the Strategic Review of Charges led by WICS, Scotland, UK - ongoing • Assessment of regulatory frameworks and the role of SUNASS, in the context of the OECD Water Governance policy dialogue with Peru
- 3. Data on the Indicators on Governance of Sector Regulators (2018) Independence Scope of Action Accountability Five sectors: energy, e- communications, air transport, rail transport, water 38 countries (both OECD and non-OECD) 10,000 responses processed by the Secretariat for 2018 26 water regulators, mostly at national/federal level and mostly arms-length agencies 77 questions on 3 topics:
- 4. Independence: a majority of independent water regulators in sample Source: OECD 2018 database on the Governance of Sector Regulators, https://www.oecd.org/gov/regulatory-policy/governance-of-regulators.htm - + 0 1 2 3 4 5 6 Independence in the water sector OECD average
- 5. Water regulators are more likely to receive guidance from government than some other utility regulators Can the regulator receive guidance from the government regarding… Source: OECD 2018 database on the Governance of Sector Regulators, https://www.oecd.org/gov/regulatory- policy/governance-of-regulators.htm
- 6. Scope of action: water regulators generally have less powers than other utility sector regulators Source: OECD 2018 database on the Governance of Sector Regulators, https://www.oecd.org/gov/regulatory-policy/governance-of-regulators.htm + - 0 1 2 3 4 5 6 Scope of action in the water sector OECD average
- 7. For more information: OECD on regulatory policy: www.oecd.org/gov/regulatory-policy/ OECD Network of Economic Regulators: www.oecd.org/gov/regulatory-policy/ner.htm Anna.Pietikainen@oecd.org @annapieti Thank you!
Editor's Notes
- We have data from 26 water regulators in our dataset. Multi-sectors are common in this sector, with more than a third of water regulators in the sample having competences in more than one of the five sectors in the indicators (generally bundled with energy, although several PUC- or competition authority-type agencies have water competences). The indicators for the water sector include fewer regulators as competencies for water and wastewater networks tend to also lie with sub-national authorities. Sub-national authorities are generally not captured in this analysis, as the survey is primarily oriented towards regulators operating at the national level. The questions in the questionnaire fall into three governance components:
- Independence: insulation of the regulator from undue influence by the government and representatives of the regulated sectors looks at the status of regulators, staffing, stability and autonomy in receiving and managing funding for its functioning This sample mostly captures water regulators on the national/federal level. At this level, independent regulators of the water sector are becoming more common (we only have six ministerial regulators on the national level in our data; that leaves 17 independent national regulators). There are two independent agencies on the subnational level captured in the sample: the Water Industry Commission for Scotland and the Ente Regulador de Aguas y Saneamiento (ERAS) of Buenos Aires, Argentina. There is one subnational ministerial regulator of the water sector in our sample (Belgium, Flanders Environment Agency). Water regulators report having more governance arrangements in place to preserve independence than air transport regulators, and a similar amount to rail transport regulators. However, they trail behind energy and e-communications regulators in this area.
- Scope of action: range of activities that the regulator performs includes decision making, enforcement and sanctioning powers Water regulators have the highest scope of action score of all the sectors – that is, a more restricted scope than the other sectors we cover.