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Performance Benchmarking in Utility Regulation: The ... - IWA

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Case-studies studies (cont.)<br />

Chile<br />

… efficient operator is imposed<br />

to enable the regulator to<br />

determ<strong>in</strong>e the base costs for<br />

tariffs sett<strong>in</strong>g and it can further<br />

<strong>in</strong>clude the expected<br />

productivity earn<strong>in</strong>gs (X factor)<br />

<strong>in</strong> the price cap formula<br />

Colombia<br />

La Comisión de Regulación de Água<br />

Potable y Saneamiento Basico (CRA)<br />

Sector economic regulation<br />

Def<strong>in</strong>ition of methods and tariff formulas<br />

Regulatory<br />

Process<br />

It uses DEA to compute the efficient adm<strong>in</strong>istrative costs and the efficient OPEX;<br />

Based on a system of price caps def<strong>in</strong>ed for a period of five years which also<br />

<strong>in</strong>cludes a m<strong>in</strong>imum limit of 50 % (price floor).<br />

12

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