1. 0 0 Water Sector and Regulation in ALBANIA WATER REGULATORY AUTHORITY Avni DERVISHI Chairman of Albanian WRA November 25,2013, Florence

2. 1 1 CONTENTS Who we are Tariff regulation Regulatory Instruments of WRA 1 2 3 4 5 Performance Monitoring & Key Performance Indicators Initiaves and Challenges

3. 2 2 independentwater supply, sewerage and treatment sector 1998 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) WHO WE ARE AND WHAT WE DO

4. 3 3 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

5. 4 4 TARIFF REGULATION Tariff Setting Guideline(s) Cost-Accounting Guideline TARIFF REGULATION Tariff Setting Guideline(s) Cost-Accounting Guideline PERFORMANCE MONITORING & BENCHMARKING Approved KPI-s Annual Performance Reports Inspections PERFORMANCE MONITORING & BENCHMARKING Approved KPI-s Annual Performance Reports Inspections INFORMATION & CONSUMER PROTECTION Customer-Utility Service Contract Advices in handling of customer complains Public Hearings Transparent Information INFORMATION & CONSUMER PROTECTION Customer-Utility Service Contract Advices in handling of customer complains Public Hearings Transparent Information SECTOR DEVELOPMEN Licensing Service Standards SECTOR DEVELOPMEN Licensing Service Standards REGULATORY INSTRUMENTS of WRA

6. 5 5 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 PERFORMANCE MONITORING

7. 6 6 Indicators that impact on the companies’ financial stability and allow insight into current management capacities and the service quality provided KPIs used for performance monitoring and benchmarking Sewerage Coverage Regulator’s perception Total cost coverage Collection efficiency Metering ratio Non-revenue water Staff efficiency Drinking water quality Hours of Supply O&M cost coverage THE WRA’S KEY PERFORMANCE INDICATORS

8. 7 7  Successful initiatives: New tariff setting methodology (last improvement on September 2011) Customers service contract Improved transparency (public hearings, website, publications)  Future Challenges: regionalization Support the implementation of the National Strategy regarding regionalization Improvement of the licensing process (new licensing rules) Improvement of the monitoring process (data reliability) INITIATIVES AND CHALLENGES

9. 8 8 FALEMINDERIT! THANK YOU! WATER REGULATORY AUTHORITY