Water Sector Regulation

8/3/2019 Water Sector Regulation

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APM/Monitoring 1

WATER SECTOR REGULATION

Presentation to the South Sudanese GovernmentDelegation

By

Eng. Mutaekulwa Mutegeki

Director of Water and SewerageENERGY AND WATER UTILITIES REGULATORY AUTHORITY



POLICY ISSUES -1

The first Water Policy for Tanzania

was formulated in 1991 andreviewed in 2002

One of the main guiding Principlesfor provision of Urban Water and

Sewerage Water Supply is that;

The regulatory framework shall beindependent and transparent and

fair to all players.



POLICY ISSUES -1

Autonomous entities and private

sector participation in urban watersupply and sewerage services

delivery without effective regulationmay result in high tariffs and

conflicts. A regulatory framework is

vital in order to serve both customerand operator interests. .



POLICY ISSUES -1

Existing laws related to water andsewerage in urban areas shall bebroadened, amended and harmonized toaccommodate changes that are taking

place, including the recent introduction ofEnergy and Water Utilities RegulatoryAuthority (EWURA) legislation which has

set the broad framework for regulatingwater and energy services delivery.



NATIONAL WATER SECTOR

STRATEGY (NWS) 2006

What it says about the Regulation of the Water Sector:

The function of monitoring and regulation canonly be carried out by an organisation which is

independent of the conflicting interests: For commercial entities (SSAs and Private):

the Government which may, for political and socialreasons, wish to provide water and sewerage

services on a less than commercial basis; and the commercial (autonomous authority) or private

sector, which may wish to put surpluses and profitahead of levels of service.



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Legend

Municipal

Councils

Ministry

responsible forWater

Water Supply andSewerageAuthorities

(inc. DAWASA)

CommunityOwned Water

SupplyOrganisations

VillageCouncils

Regional Secretariat

s

CONSUMERS

Decentralised ResponsibilityRepresentation

Service Responsibility

Regulation and MonitoringTechnical Guidance and Co-ordinationSupport, Supervision and MonitoringPerformance ContractsStatutory/Autonomous Bodies

Prime Minister’s Office - Regional

Administration and Local Government

Service Providers (public, private,NGOs, CBOs,

WCAs)

Energy and

Water UtilitiesRegulatoryAuthority

DistrictCouncils

Service Providers (private, NGOs,CBOs, WCAs)

Ministry responsible for

Health

Minister

NATIONAL WATER SECTOR STRATEGY

Division of Responsibilities



INSTITUTIONAL FRAMEWORK

IN THE WATER SECTOR (NWS)

Key players in the provision of water andsewerage services in UWSA’s ( as per Water Sector Strategy):

Ministry of Water and Irrigation: co-ordination,policy and guideline formulation, and regulation.

Energy and Water Utilities Regulatory Authority(EWURA): regulation; and

Water Supply and Sanitation (WSSA’s):management of water supply and sanitationservices mostly in urban areas.



Roles of Different Players

Ministry responsible for Water:

Develops policies and strategies. Advises EWURA in formulation of technical

guidelines/standards. Co-ordinates planning for projects of national importance. Secures finance for infrastructure and capacity developmen

projects. Monitors performance and regulates COWSOs. Provides technical guidance to Councils. Provides technical guidance and co-ordination for WSSA,

including DAWASA. Provides technical support and monitoring for major capital

works. Co-ordinates and monitors WSSA strategies and plans Supervises the Water Resources Institute.

Supervises the Drilling and Dam Construction Agency.



Water Supply and Sanitation Authorities(WSSA’s):

Own, manage and develop water supply andsewerage assets.

Prepare business plans to provide watersupply and sewerage services, includingcapital investment plans.

Secure finance for capital investment, and

relevant subsidies. Contract and manage Service Providers.

Provide services not contracted out.

Formulate by-laws for service provision.




. Energy and Water Utilities Regulatory

Authority (EWURA): Approves business plans of WSSAs. Issues operating licences to WSSAs. Approves service tariffs.

Publishes technical guidelines and standards. Monitors water quality and performance of

WSSAs. Collects and publishes comparative

performance data. Advises Ministry on impact of major capital

works on customer tariffs




LEGISLATIONS

Regulation of water supply and sewerage

services started in 2006 after the Water Act,CAP 272 was amended by a GovernmentNotice to accommodate the regulation of WaterSupply and Sewerage Authorities by EWURA.

A new Water Supply and Sanitation Act,2009came into operation in August 2009 andprovided clear division of responsibilitiesbetween the Ministry responsible for Water,Water Supply and Sanitation Authorities and

EWURA. The Act translates the National WaterPolicy and Strategy into legislation



REGULATED UTILITIES

EWURA regulates a total of 122water utilities which include;19 Regional Towns74 District Towns

21 Small Towns7 National Projects

DAWASA and DAWASCO for Dares Salaam



LICENSING

According to the Water Supply and

Sanitation Act,2009;”No person otherthan a community organisation shallprovide water supply and sanitationservices except under authority of the

licence issued by EWURA” There are two stages of licencing;

Provisional Licence; issued to existingutilities which haven't qualified for apermanent Licence.

Permanent Licence;



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What do Licences contain?

Licences establish the rights andobligations of utilities

Licences establish conditions andreporting requirements and schedules

that utilities must adhere to in order toretain their licensure.

Licences indicate actions necessary

for continued their licensure.



PERFORMANCE MONITORING

Performance data and Reporting

Monthly Reports;

According to Water Utilities InformationSystem (MajIs).

Annual Reports;

A comprehensive report according to theAnnual Report format.

According to MajIs.




Performance data assists EWURA inevaluating UWSA’S so as to ensure that;

Quality of service; and

Efficiency of provision of water and

sewerage services is improved.Evaluation of submitted performance data

is supplemented by site visits.

In order to enhance performancemonitoring and evaluation, EWURA hasprepared a Performance Agreement (PA)between UWSA’s and EWURA. EWURA

has signed PAs with 19 Regional UWSAs




Rationale of the Performance Agreement

It helps utilities to improve the service delivered,by striving to reach the set targets and servicelevels.

A mean for the utilities to evaluate their

performances on their own. A tool for the “regulator” to monitor the

performance of the utilities to ensure that theneeds of the consumers of the service are met

and the services are sustainable. A tool for the “regulator” to compare the

performance of water utilities. EWURA haspublished the first Water Utilities ComparativeReport for 2008/09.



CHALLENGES

Service providers are many and diverse insize, capability and capacity. E.g.currently, there are 122 water utilitiesranging from small towns to cities.

Weak managerial, financial and technicalcapacity especially in District and SmallTowns Utilities.

Move to cost reflective tariffs (low tariffs inwater) ..

Poor quality of service and low servicecoverage.



CHALLENGES ……

Low awareness on regulation. EWURA’s decisions have to take into

consideration consumer’s interests and

also ensure sustainability of regulatedservices.

Therefore, most decisions made byEWURA (at this early stage of

regulation) are susceptible to complaintsfrom either side.



For more information

FREQUENTLY VISIT EWURA WEBSITEhttp://www.ewura.go.tz

http://www.ewura.com/

http://www.ewura.com/

Water Sector Regulation

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