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WATER REGULATORY AUTHORITY
Water Sector and Regulation
in ALBANIA
Avni DERVISHI
Chairman of Albanian WRA
November 25,2013, Florence
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CONTENTS
1 Who we are
2 Tariff regulation
3 Regulatory Instruments of WRA
4 Performance Monitoring & Key Performance Indicators
5 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 –it’s 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
Public Hearing
in service area
(large service providers only)
Annual statements of the
service provider and
information on all subsidies
ready
Submission of tariff
proposal (deadline: June 30)
Incl. Supervisory Board
opinion and customer
statement (for large service
providers)
Adjustments or additional
documents from service
provider
Analysis by Economic
Department
Presentation of service
provider to WRA
Presentation to Commission
Advertisement of new tariffs
(30 days notice) by service
provider
Communication of
Commission's Preliminary
Decision (transparence) to
service provider and local
authorities  14 days for
service provider to comment
Communication of final
Commission Decision to
service provider (end of
March of following year at the
latest) and publication of new
tariffs
First screening (within 45
days)
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REGULATORY INSTRUMENTS of WRA
SECTOR DEVELOPMEN
• Licensing
• Service Standards
PERFORMANCE
MONITORING & BENCHMARKING
• Approved KPI-s
• Annual Performance Reports
• Inspections
TARIFF REGULATION
• Tariff Setting Guideline(s)
• Cost-Accounting Guideline
INFORMATION &
CONSUMER PROTECTION
• Customer-Utility Service Contract
• Advices in handling of customer
complains
• Public Hearings
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• Transparent Information
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 operator’s 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 WRA’S KEY PERFORMANCE INDICATORS
Indicators that impact on the companies’ financial stability
and allow insight into current management capacities and the
service quality provided
Total cost
coverage
Non-revenue
water
Metering
ratio
O&M cost
coverage
Collection
efficiency
KPIs used for performance monitoring
and benchmarking
Staff
efficiency
Hours of
Supply
Drinking
water quality
Sewerage
Coverage
Regulator’s
perception
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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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WATER REGULATORY AUTHORITY
FALEMINDERIT!
THANK YOU!
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