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Water Utilities (water + utility)
Selected AbstractsPolitical and Regulatory Risk in Water Utilities: Beta Sensitivity in the United KingdomJOURNAL OF BUSINESS FINANCE & ACCOUNTING, Issue 7-8 2001Roger Buckland UK utilities are generally regulated by the periodic setting of a price cap (the RPI-X mechanism). To establish these caps, regulators must determine what returns are appropriate on the capital employed by utilities. This paper addresses the issue of the level of risk inherent in investment in the equity of regulated water utilities in the UK. It uses the techniques of the Kalman Filter to estimate daily betas for the major utilities in the period from privatisation to mid-1999. The paper demonstrates that water utilities' risk is time-variant. It demonstrates, also, that there have been significant political and regulatory influences in the systematic risk faced by water utility shareholders. It finds beta to display little evidence of cyclical variation across the regulatory review cycle. The paper also confirms that significant excess returns have been generated over the history of the privatised water sector and suggests that over-estimation of systematic risk faced by investors in the sector may imply further excess returns in the next regulatory review period. [source] Estimating the Relative Efficiency of Brazilian Publicly and Privately Owned Water Utilities: A Stochastic Cost Frontier Approach,JOURNAL OF THE AMERICAN WATER RESOURCES ASSOCIATION, Issue 5 2007Geraldo Da Silva e Souza R15; R38 Abstract:, This paper assesses cost efficiencies of Brazilian public and private companies of water supply. To measure the efficiency, we used a stochastic frontier model derived from the translog family , a specification similar to a Cobb-Douglas including a quadratic term in log output. The model parameters are estimated by maximum likelihood using Brazilian data for the year 2002. Statistical inference leads to the conclusion that there is no evidence that private firms and public firms are significantly different in terms of efficiency measurements. [source] A tale of two cities: restoring water services in Kabul and MonroviaDISASTERS, Issue 4 2009Jean-François Pinera Kabul and Monrovia, the respective capitals of Afghanistan and Liberia, have recently emerged from long-lasting armed conflicts. In both cities, a large number of organisations took part in emergency water supply provision and later in the rehabilitation of water systems. Based on field research, this paper establishes a parallel between the operations carried out in the two settings, highlighting similarities and analysing the two most common strategies. The first strategy involves international financial institutions, which fund large-scale projects focusing on infrastructural rehabilitation and on the institutional development of the water utility, sometimes envisaging private-sector participation. The second strategy involves humanitarian agencies, which run community-based projects, in most cases independently of the water utilities, and targeting low-income areas. Neither of these approaches manages to combine sustainability and universal service. The paper assesses their respective strengths and weaknesses and suggests ways of improving the quality of assistance provided. [source] Public Provision for Urban Water: Getting Prices and Governance RightGOVERNANCE, Issue 4 2008EDUARDO ARARAL Public sector monopolies are often associated with inefficiencies and inability to meet rising demand. Scholars attribute this to fundamental problems associated with public provision: (1) a tradition of below-cost pricing due to populist pressures, (2) owner,regulator conflicts of interest, and (3) perverse organizational incentives arising from non-credible threat of bankruptcy, weak competition, rigidities, and agency and performance measurement problems. Many governments worldwide have shifted to private provision, but recent experience in urban water utilities in developing countries has shown their limitations because of weak regulatory regimes compounded by inherent problems of information, incentives, and commitment. This article examines the paradoxical case of the Phnom Penh Water Supply in Cambodia to illustrate how public provision of urban water can be substantially improved by getting prices and governance right. Findings have implications for the search for solutions to provide one billion people worldwide with better access to potable water. [source] The potential role for economic instruments in drought management,IRRIGATION AND DRAINAGE, Issue 4 2004Stephen Merrett changement du climat; gestion des sécheresses; irrigation; prix de l'eau Abstract Climate change in the twenty-first century will likely reduce the return period of drought events, indicating that drought management will be even more important in the future than it is already. In the case of England's Anglian region it is shown that two principal institutions are responsible for drought management,the Environment Agency and Anglian Water Services (AWS). The region has a fast-growing population of more than 5 million people, it has 58% of the most productive agricultural land in England and Wales, and in some summers irrigation can make up 50% of water use. An examination of the drought plans of the Agency and AWS demonstrates that in both cases the policy instruments that they deploy to manage drought are informational, infrastructural and regulatory. In neither case would they use water pricing as a management tool. Moreover, the government's drought plan guidelines for the water utilities make no reference to economic instruments of drought management nor do they suggest that utilities should review the economic impact on their customers of regulatory action. The principal issues that would arise if water charging were to be deployed as a drought management instrument are then reviewed. The paper concludes by proposing that national government should evaluate the feasibility, costs, benefits and risks of replacing the regulatory instruments of drought management by economic instruments. Copyright © 2004 John Wiley & Sons, Ltd. Avec les changements climatiques prévus au vingt-et-unième siècle les périodes de sècheresse deviendront probablement plus fréquentes et la gestion de ces sécheresses deviendra plus problématique. Cet article indique que dans la région Anglian de l'Angleterre deux institutions ont la responsabilité de cette gestion: "the Environment Agency" et "Anglian Water Services". Un examen des plans d'action pour la sécheresse de ces deux institutions montre que, dans les deux cas, les instruments qui seront déployés seront soit informationels soit infrastructurels soit règlementaires. Il n'y a pas dans ces plans une seule référence au prix de l'eau comme instrument de gestion. De même les conseils du gouvernement national pour la préparation de ces plans ignorent les instruments économiques. L'article conclut que le gouvernement doit réviser la faisabilité des instruments de gestion des sécheresses, et d'estimation de leurs coûts et bénéfices pour introduire davantage d'instruments économiques. Copyright © 2004 John Wiley & Sons, Ltd. [source] Political and Regulatory Risk in Water Utilities: Beta Sensitivity in the United KingdomJOURNAL OF BUSINESS FINANCE & ACCOUNTING, Issue 7-8 2001Roger Buckland UK utilities are generally regulated by the periodic setting of a price cap (the RPI-X mechanism). To establish these caps, regulators must determine what returns are appropriate on the capital employed by utilities. This paper addresses the issue of the level of risk inherent in investment in the equity of regulated water utilities in the UK. It uses the techniques of the Kalman Filter to estimate daily betas for the major utilities in the period from privatisation to mid-1999. The paper demonstrates that water utilities' risk is time-variant. It demonstrates, also, that there have been significant political and regulatory influences in the systematic risk faced by water utility shareholders. It finds beta to display little evidence of cyclical variation across the regulatory review cycle. The paper also confirms that significant excess returns have been generated over the history of the privatised water sector and suggests that over-estimation of systematic risk faced by investors in the sector may imply further excess returns in the next regulatory review period. [source] Universal access to water and sanitation: Why the private sector must participateNATURAL RESOURCES FORUM, Issue 4 2003Terence Lee Abstract Against the background of the current state of provision of drinking water and sanitation in the world , with one billion lacking safe water, and 2.2 billion not having adequate sanitation , this article argues that private participation is necessary. The most important issues for the management of water utilities in the 21st century are identified as mobilizing investment for the highly capital intensive operation of water supply and sanitation infrastructure, and achieving efficiency in the delivery of services. The article highlights the issues that need to be raised if private investment is to be seriously considered as an alternative. Case studies, especially from Latin America (Argentina, Chile, Peru, Bolivia), illustrate different modes of private participation, and possible reasons for successes and failures are discussed. The article stresses that regardless of the modality of private sector involvement, on-going government regulatory responsibility in the water sector is crucial. It suggests that regulatory policy must go beyond just setting tariffs, to develop standards for drinking water quality and waste treatment, as well as other standards. In conclusion, the article recognizes that numerous and increasingly difficult challenges face utilities in fulfilling their responsibility to deliver drinking water of adequate quality, in sufficient quantity, and at affordable prices, as well as safe and sustainable disposal of wastewaters for members of urban and rural communities. [source] INTERNATIONAL TRENDS IN WATER UTILITY REGIMESANNALS OF PUBLIC AND COOPERATIVE ECONOMICS, Issue 1 2007Yeti Nisha Madhoo ABSTRACT,:,This paper provides the taxonomy of country experiences in managing their water utilities. Institutions for water supply for various uses and their financial implications are analysed. Different episodes of governmental intervention in water supply and charging are examined. From the survey of different regimes and the existing literature, cost recovery and affordability emerge as the major building blocks for any reform of water utilities. Privatization of water services in terms of ownership change, public-private arrangements and international involvement seems to be a mixed blessing and donor assistance to water projects raises issues in international inequality and does not increase cost recovery levels. Cost recovery is positively associated with economic development, institutional quality and performance of water utilities. [source] Organization, Management and Delegation in the French Water IndustryANNALS OF PUBLIC AND COOPERATIVE ECONOMICS, Issue 4 2001Jihad C. Elnaboulsi The water industry is largely a natural monopoly. Water distribution and sewerage services are characterized by networks and its natural monopoly derives from the established local networks of drinking water and sewers: they are capital intensive with sunk costs and increasing returns to scale. In France, local communities have a local requirement of providing public services under optimum conditions in terms of techniques and cost-effectiveness, and subject to respect different kind of standards in terms of water quality and level of services. They are responsible for producing and distributing drinking water, and collecting and treating wastewater. Furthermore, the French water utilities are required to be financially self-sufficient. Rate-setting varies across regions and local territories due to a variety of organizational features of services and availability of water resources. The management of these local public services can be public or private: local governments have the right, by the constitution, to delegate water service management to private companies which operate under the oversight of local municipal authorities. Today, nearly 80 per cent of the French population receive private distributed water. Different reasons are responsible for the poor performance and low productivity of most French public water utilities: technical and operational, commercial and financial, human and institutional, and environmental. Thus, many water public utilities have looked for alternative ways to provide water and sanitation services more efficiently, to improve both operational and investment efficiency, and to attract private finance. The purpose of this paper is to present the French organizational system of providing drinking water services, and collecting and treating wastewater services: legal aspects, contracts of delegation, and competition. [source] Urban water management: optimal price and investment policy under climate variability,AUSTRALIAN JOURNAL OF AGRICULTURAL & RESOURCE ECONOMICS, Issue 2 2009Neal Hughes Australian urban water utilities face a significant challenge in designing appropriate demand management and supply augmentation policies in the presence of significant water scarcity and climate variability. This article considers the design of optimal demand management and supply augmentation policies for urban water. In particular, scarcity pricing is considered as a potential alternative to the predominant demand management policy of water restrictions. A stochastic dynamic programming model of an urban water market is developed based on data from the ACT region. Given a specification of the demand and supply for urban water state dependent optimal price and investment policies are estimated. The results illustrate how the optimal urban water price varies inversely with the prevailing storage level and how the optimal timing of investment differs significantly between rain dependent and rain independent augmentation options. [source] A tale of two cities: restoring water services in Kabul and MonroviaDISASTERS, Issue 4 2009Jean-François Pinera Kabul and Monrovia, the respective capitals of Afghanistan and Liberia, have recently emerged from long-lasting armed conflicts. In both cities, a large number of organisations took part in emergency water supply provision and later in the rehabilitation of water systems. Based on field research, this paper establishes a parallel between the operations carried out in the two settings, highlighting similarities and analysing the two most common strategies. The first strategy involves international financial institutions, which fund large-scale projects focusing on infrastructural rehabilitation and on the institutional development of the water utility, sometimes envisaging private-sector participation. The second strategy involves humanitarian agencies, which run community-based projects, in most cases independently of the water utilities, and targeting low-income areas. Neither of these approaches manages to combine sustainability and universal service. The paper assesses their respective strengths and weaknesses and suggests ways of improving the quality of assistance provided. [source] Urban water supply and local neoliberalism in Tagbilaran City, the PhilippinesASIA PACIFIC VIEWPOINT, Issue 2 2009Karen T. Fisher Abstract The aim of this paper is to explore the processes and outcomes of neoliberalism in relation to urban water supply in the city of Tagbilaran, the Philippines, in order to provide a nuanced account of (an) actually existing hybrid neoliberal space. Using Bakker's typology of market environmentalist reforms in resource management as a guiding frame to link this case to a bigger ,neoliberal' conversation, I distinguish how reforms to resource governance at the national level, coupled with changes in the ways in which resource management institutions and resource management organisations function at the local level have acted to constitute local practices of neoliberal governance. Local articulations of (national and supranational) neoliberal and development discourses are revealed as a means for reconceptualising the role of the state and the emergence of new forms of hybrid governance in Tagbilaran. Analysis of the operation of BWUI, a public/private water utility, and the politics of privatisation/private sector participation enables a closer inspection of how water and water services are politicised and resisted by local publics. [source] From sustainable management to sustainable development: a longitudinal analysis of a leading New Zealand environmental reporterBUSINESS STRATEGY AND THE ENVIRONMENT, Issue 4 2006Helen Tregidga Abstract This paper reports the results of an interpretive textual analysis of New Zealand's most consistent and arguably leading reporter on environmental and social impacts. Since 1995, Watercare Services Ltd, an Auckland-based water utility, has been an award winning environmental reporter. The paper works with all of the organization's reports since 1993 through 2003 identifying and analysing the emergence and development of a sustainable development discourse. Focusing on the language and images used to construct meanings, and the context in which the reports emerged, the paper traces the organization's reporting developments. The paper illustrates how, in evolving from environmental reports to sustainable development reports, the organization has (re)constructed itself from one that sustainably manages resources to one that practises sustainable development. The implications of these developments are explored in terms of the literature on ,capture' and organizational change. Copyright © 2006 John Wiley & Sons, Ltd and ERP Environment. [source] | ||||||||||||||||