Water Sector and Regulation in ALBANIA

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Water Sector and Regulation in ALBANIA
WATER REGULATORY AUTHORITY
Avni DERVISHI Chairman of Albanian WRA November
25,2013, Florence
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CONTENTS
Who we are
Tariff regulation
Regulatory Instruments of WRA
Performance Monitoring Key Performance
Indicators
Initiaves and Challenges
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WHO WE ARE AND WHAT WE DO

• The WRA is a public independent national
  institution that regulates the water supply,
  sewerage and treatment sector established by Law
  No. 8102, dated 28.03.1996, as amended, On the
  Regulatory Framework of Water Supply and
  Wastewater Disposal and Treatment Sector, became
  operational in 1998.
• An independent body
• Rule-making powers - decisions are taken by the
  national commission
• Funding resources its composed of the
  regulatory fees set for the operators activity
• We exercise the following functions and powers
• Gives the licenses for all the operators of the
  sector
• Sets tariffs
• Prepares/approves uniform service standards
• Establishes a transparent, legal and regulatory
  environment
• Protects the interest of the public and the
  Consumers
• Prepares reports and recommendations for the
  Council of Ministers
• Collects relevant information and monitors the
  sector performance
• Professional staff 5 members of the commission
  and 13 employees
• Operating budget - 44.103.000 ALL / 315.000 (1
  euro 140 ALL)

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Tariff regulation

• WRA decides on the tariff setting methodology
  for calculating the wholesale and retail tariffs
  of the water, wastewater and treatment
• No tariff, or part of it, is subject to change
  more than once per annum

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REGULATORY INSTRUMENTS of WRA

• SECTOR DEVELOPMEN
• Licensing
• Service Standards

• TARIFF REGULATION
• Tariff Setting Guideline(s)
• Cost-Accounting Guideline

• INFORMATION
• CONSUMER PROTECTION
• Customer-Utility Service Contract
• Advices in handling of customer complains
• Public Hearings
• Transparent Information

• PERFORMANCE
• MONITORING BENCHMARKING
• Approved KPI-s
• Annual Performance Reports
• Inspections

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PERFORMANCE MONITORING

• The results of our performance monitoring and
  data analysis primarily feed into two key
  regulatory processes
• tariff regulation
• make a correct assessment of each operators
  performance
• set challenging yet realistic performance
  targets (or benchmarks)
• service providers have to demonstrate
  satisfactory performance before WRA will approve
  any request for tariff adjustments
• performance reporting
• the service providers operational, financial and
  customer service performance is subject to the
  public every year
• operators can appraise their own performance
  against that of other service providers operating

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THE WRAS KEY PERFORMANCE INDICATORS
Indicators that impact on the companies
financial stability and allow insight into
current management capacities and the service
quality provided
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INITIATIVES AND CHALLENGES

• Successful initiatives
• New tariff setting methodology (last improvement
  on September 2011)
• Customers service contract
• Improved transparency (public hearings, website,
  publications)
• Future Challenges
• Support the implementation of the National
  Strategy regarding regionalization
• Improvement of the licensing process (new
  licensing rules)
• Improvement of the monitoring process (data
  reliability)

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FALEMINDERIT! THANK YOU!
WATER REGULATORY AUTHORITY