Joint workshop on Enhancing efficiency and sustainability of Water Supply and Sanitation presentation - Margarida Monte, Performance indicators and monitoring programmes: How to reward performance, Portugal

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MARGARIDA MONTE
PERFORMANCE INDICATORS AND
MONITORING PROGRAMMES:
HOW TO REWARD PERFORMANCE
OECD | Workshop on enhancing sustainability of WSS provision
16 June 2021

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TABLE OF CONTENTS
I. ERSAR AND THE PORTUGUESE WATER SECTOR
II. QUALITY OF SERVICE REGULATION
GOALS
ANNUAL CYCLE
MONITORING AND BENCHMARKING
PUBLICATION OF RESULTS
AWARDING
PERFORMANCE INDICATORS
DRINKING WATER SUPPLY
WASTEWATER MANAGEMENT
III. FINAL REMARKS

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ERSAR
Universe of around
400 utilities
state owned and
municipalities
in direct management
model, by delegation
or concession
operating bulk or
retail systems or both
238 water supply utilities
236 wastewater management
utilities
257 urban waste management
utilities
10 million consumers
I. ERSAR AND THE PORTUGUESE WATER SECTOR

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II. QUALITY OF SERVICE REGULATION: GOALS
Protect the interests of users regarding the quality of service provided
Compare results between utilities (benchmarking)
Guide entities towards efficiency and effectiveness
Consolidate a culture of information: concise, credible and easy to understand.

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2004 2011 2016 2021
II. QUALITY OF SERVICE REGULATION: 3 generations of KPI
3rd generation
1st generation 2nd generation
20 indicators 16 indicators 14 indicators
4th generation
In the
pipeline

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Technical guide and files
BEGINNING OF
THE CYCLE
January
DATA
TREATMENT
June to August
PUBLISHING
AND
PUBLICIZING
November
DATA
VALIDATION
(audits)
May to June
DATA REPORT
BY UTILITIES
March and April
RIGHT-OF-
REPLY BY THE
UTILITIES
September
Individual file
Portal ERSAR
Annual report
Website App
Audits
II. QUALITY OF SERVICE REGULATION: ANNUAL CYCLE

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II. QUALITY OF SERVICE REGULATION: MONITORING

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For each performance indicator, the operators are ranked
and compared with their peers (clusters), organized in
different regions and different types of areas (rural, urban).
This information allows to easily identify the best performing
operators, those who are above and bellow average, or
those who are within the different reference levels.
Benchmarking is a powerful regulating tool, as it creates
an artificial competitive environment in this monopoly sector,
which can lead to the improvement of the utilities’
performance.
II. QUALITY OF SERVICE REGULATION: BENCHMARKING

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II. QUALITY OF SERVICE REGULATION: PUBLICATION OF
RESULTS

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Stamps and Awards for the best operators in:
- Drinking Water Quality
- Drinking Water Supply Service
- Wastewater Management Service
- Waste Management Service
- Efficient Use of Water
Rewards best practices and good behaviour of utilities towards the consumer
Improves consumer’s awareness for the quality of the service
Increases public recognition of water utilities and of ERSAR
II. QUALITY OF SERVICE REGULATION: AWARDS

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Protection of
user interests
DRINKING
WATER
SUPPLY
INDICATORS
Service
provision
sustainability
Environmental
sustainability
Accessibility of service for users
AA01 – Service coverage
AA02 – Affordability of the service
Quality of service provided to users
AA03 – Service interruptions
AA04 – Safe water
AA05 – Reply to written suggestions and complaints
Economic sustainability
AA06 – Cost recovery ratio
AA07 – Connection to the service
AA08 – Non-revenue water
Infrastructural sustainability
AA09 – Mains rehabilitation
AA10 – Mains failures
Physical productivity of human resources
AA11 – Adequacy of human resources
Efficient use of environmental resources
AA12 – Real water losses
AA13 – Standardised energy consumption
Efficiency in pollution prevention
AA14 – Proper sludge disposal
Fed by
86
variables
II. PERFORMANCE INDICATORS: DRINKING WATER SUPPLY

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Protection of
user interests
WASTEWATER
INDICATORS
Service
provision
sustainability
Environmental
sustainability
Accessibility of service for users
AR01 – Service coverage through sewerage networks
AR02 – Affordability of the service
Quality of service provided to users
AR03 – Flooding occurrences
AR04 – Reply to written suggestions and complaints
Economic sustainability
AR05 – Cost recovery ratio
AR06 – Connection to the service
Infrastructural sustainability
AR07 – Sewer rehabilitation
AR08 – Sewer collapses
Physical productivity of human resources
AR09 – Adequacy of human resources
Efficient use of environmental resources
AR10 – Standardised energy consumption
Efficiency in pollution prevention
AR11 – Accessibility to the wastewater treatment
AR12 – Control of emergency discharges
AR13 – Compliance with discharge permit
AR14 – Proper sludge disposal
Feed by
86 data
Fed by
85
variables
II. PERFORMANCE INDICATORS: WASTEWATER MANAGEMENT

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Nearly seventeen years after the implementation of the 1st generation of the quality of service
assessment system, this system remains a key tool for regulation, recognized by the Portuguese
water utilities.
It helps to monitor the utilities' performance, comparing between the expected and the real
performance results and between current and past performance results, allowing to identify and
prioritize improvement opportunities.
The information reported on the scope of the quality of service assessment allows Portugal to
respond with reliable information about the water sector whenever requested.
III. FINAL REMARKS

14. Thank you!
margarida.monte@ersar.pt