Tariff Regulation Of The Integrated Water
Service: An Italian Case
Author(s)
F. Cucchiella, M. Gastaldi & D. Frigioni
Abstract
In the water sector the tariff represents the regulatory service instrument through
which the process of convergence between the conditions offered by providers
and the conditions desired by collectivity is activated. At the same time the tariff
must cover the cost of production and management of the service that overcomes
the logic, sustained for far too long in Italy, to furnish an essential resource free
of charge. The purpose of this work is to present the economic technical plan of
an Optimal Territorial Basin (OTB) for an Italian city (L’Aquila) and the
determination of the tariff adopted by the Integrated Water Service (IWS) in the
next thirty years. Moreover this plan is able to activate forms of verification and
incentive of the technical and economic efficiency that are the basis of water
industrial management.
Keywords: price cap regulation, water management, network.
1 Introduction
The water sector provides an essential service of public utility; therefore it is
necessary to guarantee the continuity of the service supply and an elevated
qualitative standard to an accessible tariff. It’s essential, therefore, that the
management of the water resource is efficient and that a suitable system of
regulation is used. Law 36/94 \“dispositions in subject of water resources” (Law
Galli) introduced a new way regarding the management of water services to
overcome its fragmentation which is argued as the principal cause of the
diseconomies and the dysfunctions of the sector (Barbese and Meucci [1],
Caselli and Peruzzi [2]); for water services, it is meant here all those services
Keywords
price cap regulation, water management, network.
Related Book
Other papers in this volume
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