arnsburger str. 64, 60385 frankfurt, germany tel +49-69-943188-0, fax +49-69-943188-18 e-mail:...

Arnsburger Str. 64, 60385 Frankfurt, GermanyTel +49-69-943188-0, Fax +49-69-943188-18e-mail: [email protected]: www.macsonline.de

April 05, 2006

Establishment and Development of a National Water and Sanitation Regulatory Authority

Regulatory Organizational StructuresPresentation to the Review Commission

2

Dr. Thomas Schiller

Option 1: NWSA is not an appropriate institution to be responsible for regulation

+ Is envisioned by the cabinet resolution 237

– However conflict of interest as long as NWSA is engaged in service provision

– Difficult to change the Institution’s existing corporate identity

Option 2: Independent regulator outside MWE is best practice

+ International best practice

– However decision by Parliament is required, which is a lengthy process

Option 3: Regulator within MWE is a weak option

+ Can be implemented quickly through ministerial decision

– However no own legal personality and no independence at all

Option 4: Regional / Local Regulator lead to high operational inefficiency in Yemen

+ Can be structured according to best practice

– In a relatively small country it produces high operational inefficiencies

There should be no conflict of interest and wide independence

3

Dr. Thomas Schiller

Phasing in approach towards best practice is recommended

Water & Wastewater Regulatory Authority National Water & Wastewater Regulator

Cabinet or Presidential Decree

Semi-Independent Independent

2006 2007 2008 2009 2010

Law approved by Parliament

Would have own legal personalityWould have own revenuesWould report to the Minister and the Service Committee of the ParliamentDependence would be reduced to the appointment of the Director General and head of Directorates

4

Dr. Thomas Schiller

Selection of Director General and Heads of Directorates:» Nomination by Minister for Water and Environment appointment by Cabinet

» Candidates would be identified through public advertisement. Ministry will be supported by international recruitment consultant

At first the Regulator is a Authority under the umbrella of MWE

MWEMWE

NWRANWRA GARWSPGARWSP NWSANWSA LCLCEPAEPA

Semi-Independent Water & Wastewater Regulatory Authority

MinisterMinisterWater & Wastewater

Regulatory Authority

Water & Wastewater

Regulatory Authority

5

Dr. Thomas Schiller

Then the Regulator Commission becomes an independent Organization

Parliament Services Committee or Office of the PresidentParliament Services Committee or Office of the President

National Water & Wastewater Regulator

National Water & Wastewater Regulator

Parliament or President

Appointment of Director General and Heads of Directorates:

Nomination by Prime Minister and appointment by President or Parliament

6

Dr. Thomas Schiller

A non-political Regulatory Council takes the decisions

Director General Director General

General

Services

General

Services

DirectorateAsset and TariffEvaluation

DirectorateService QualityComparative Competitionand Benchmarking

DirectorateCommunication and Customer Relation

Legal Advisor

Regulatory Council Regulatory Council

Water & Wastewater Regulatory Authority - WWRA

7

Dr. Thomas Schiller

External members increase transparency of decisions

Chair: Director General

DirectorAsset Evaluation and Tariffs

DirectorComparative Competitionand Benchmarking

DirectorCommunication and Customer Relation

Representative ofChamber of Commerce

Representative of Yemen Standardization, Metrology and Quality Control Organization - YSMQCO

External Members

Composition of WWRA Regulatory Council

8

Dr. Thomas Schiller

WWRA does Asset and Tariff Evaluation


General

Services

General

Services

DirectorateAsset and Tariff Evaluation

DirectorateService QualityComparative Competitionand Benchmarking


Legal Advisor



9

Dr. Thomas Schiller

WWRA will have the power to approve or reject utility tariffs

Function» Assess financial viability» Evaluate investment requirements» Revise Tariffs» Consider transparent subsidy schemes

in the framework of Government’s social policy

» Develop milestones for asset and tariff development

Required Staff (5)» Director: either Engineer or Economist» 1 Planning Engineer» 1 Economist / Financial Analyst» 2 support staff

Directorate: Asset and Tariff Evaluation

The directorate will develop and update a financial model for each utility. The directorate will give an evaluation of the financial viability on a yearly basis. The directorate will prepare the material for the decision taking of the Regulatory Council.

10

Dr. Thomas Schiller

Service Quality, Comparative Competition and Benchmarking


General

Services

General

Services


DirectorateService Quality Comparative Competitionand Benchmarking


Legal Advisor



11

Dr. Thomas Schiller

WWRA will enact Economic Regulation

Function» Evaluate service performance» Enhance competition» Harmonization of relevant technical,

operational and financial rules and regulations

» Auditing of drinking water quality tests

» Auditing of wastewater analysis» Develop milestones standards and

benchmarks

Required Staff (8)» Director: either Engineer or

Economist» 1 Operations Engineer» 1 Environmental Engineer» 1 Economist» 4 support staff

Directorate: Service Quality, Comparative Competition and Benchmarking

The directorate will define, collect and process performance relevant data. The directorate will compare performance data among utilities and prepare respective reports. The directorate will develop benchmarks to be decided upon by the Regulatory Council. The directorate will design auditing procedures. Field work will be outsourced.

12

Dr. Thomas Schiller

Communication and Customer Relations is paramount


General

Services

General

Services


DirectorateService Quality Comparative Competitionand Benchmarking


Legal Advisor



13

Dr. Thomas Schiller

WWRA seeks transparency and follows a consultative approach

Function» Publishing regular information on

WWRA» Publishing regular information on

utility performance» Liaise with utilities (“Utility Advisory

Committee”)» Liaise with MWE, NWRA,

EPA,YSMQCO(“Regulator Coordination Committee”)

» Liaise with MoLA and Local Council Service Committees

» Liaise with Parliamentary Service Committee

Required Staff (5)» Director: Economist (Marketing)» 1 Journalist» 1 Publishing / Designing Expert» 2 support staff

Directorate: Communication and Customer Relations

The directorate will organize the external communication

14

Dr. Thomas Schiller

General Services


General

Services

General

Services

DirectorAsset and Tariff Evaluation

DirectorService Quality Comparative Competitionand Benchmarking

DirectorCommunication and Customer Relation

Legal Advisor



15

Dr. Thomas Schiller

Lean administration

Function» Manage WWRA’s human resources» Manage WWRA’s finances» Provide office logistic» Manage IT support

Required Staff (7)» Director: Administrator » 1 Accountant» 1 IT Expert» 4 support staff

General Services

General Services will provide the administrative infrastructure

16

Dr. Thomas Schiller

Service Provider have to Finance WWRA

WWRA will have its own budget

In the beginning it is proposed to share the yearly cost among the regulated organizations as a lump sum according to the financial strength of each organization.

Later a more sophisticated system can be developed

17

Dr. Thomas Schiller

A Structure of Formal Interfaces


General

Services

General

Services


DirectorateService Quality Comparative Competition and Benchmarking


Legal Advisor



Regulator Coordination Committee

Utility Advisory Committee Customer Service “Window”

18

Dr. Thomas Schiller

Existing regulation and standardization bodies have to coordinate


Function» Development of standards» Report about the institution’s

monitoring work» Address specific regulatory problems

from each institution’s perspective with the aim to define common positions

» Coordinate enforcement mechanisms

Members» WWRA: Drinking water treatment

and distribution and wastewater collection and treatment regulation

» NWRA: Water resources regulation» EPA: Environmental protection

regulation» YSMQCO: National norms and

standards regulation

Can convene on different levels: Head of Organizations or Head of Departments

19

Dr. Thomas Schiller



General

Services

General

Services




Legal Advisor



Utility Advisory Committee Customer Service “Window”


20

Dr. Thomas Schiller

Communication with and among the utilities

Utility advisory Committee:

Function» Harmonization of procedures » Implementation of standards » Discussion of performance

benchmarks» Discussion of tariff policies» Other issues of common interest

Members» NWSA» Autonomous NWSA Branches» LCs,» Autonomous Branches of LCs,

Can convene on different levels: Head of Organizations or Head of Departments

For specific issues, such as water quality, also other organizations can be invited: Tanker Service Association, Purification Plants, Small private network operators

21

Dr. Thomas Schiller



General

Services

General

Services




Legal Advisor


Regulator Coordination Committee Utility Advisory Committee Customer Service “Window”


22

Dr. Thomas Schiller

WWRA will seek feedback of customers (customer protection)

Customer Service “Window”

Function» Allow customer representatives to

enter in structured communication with WWRA

» Allow WWRA to actively seek direct feedback from customer representatives

Target Group» All kind of formalized or non-

formalized customer organizations or customer representatives

WWRA will monitor customer satisfaction

23

Dr. Thomas Schiller

Thank you very much for your attention!

www.macsonline.de

arnsburger str. 64, 60385 frankfurt, germany tel +49-69-943188-0, fax +49-69-943188-18 e-mail:...

Documents