The ESAWAS Regulators Association has completed its 5th Regulatory Peer Review.

Since 2013, ESAWAS has been undertaking regulatory Peer Reviews of its Members and the 5th Peer Review was done on the Lesotho Electricity and Water Authority (LEWA). This followed previous reviews done on EWURA of Tanzania, WASREB of Kenya, NWASCO of Zambia and CRA of Mozambique.

The Regulatory Peer Reviews are a hands-on interrogation of the regulatory systems and practices of the Members conducted by the CEOs and senior personnel of the visiting Members. The Review conducted over a one-week period included field visits to the Utility company (WASCO) branches in Maputsoe and Teyateyaneng as well as meeting various stakeholders from the Honourable Minister of Water and Commissioner of Water to representatives from the European Union, media houses, Transformation Resource Centre, Consumer protection Association and Textile Exporting Industries Association.

The week-long activity was concluded with a visit to the Metolong Dam which is a key project that has improved water supply services to the capital Maseru and surrounding areas.

The Peer Review revealed that LEWA has played a key role in promoting improvements in water supply and sewerage services. The regulator though young, has had considerable positive impact on the sector and still has room for growth.

 

ESAWAS has published the third benchmarking report which presents an analysis of the performance of large water and sewerage Utilities in eight countries of the Eastern and Southern African region for the period 2015/2016.  

The benchmarked Utilities selected as either the single or largest Utility in the country were:  Nairobi City Water and Sewerage Company (NCW&SC) of Kenya; Dar Es Salaam Water and Sewerage Corporation (DAWASCO) of Tanzania; Lusaka Water and Sewerage Company (LWSC) of Zambia; Águas da Região de Maputo (AdeM) of Mozambique; Water and Sanitation Corporation Ltd (WASAC) of Rwanda; Water and Sewerage Company (WASCO) of Lesotho, National Water and Sewerage Corporation (NWSC) of Uganda and Zanzibar Water Authority (ZAWA) of Zanzibar.

The analysis of the performance was done against ten key performance indicators and benchmarks defined by ESAWAS. The key performance indicators (KPIs) were grouped according to similarity in the components of Quality of Service, Economic Efficiency and Operational Sustainability. Finally the performance of the Utilities was ranked using an integrated measurement of performance in the aforementioned components, called the Water Utility Performance Index.

The main results show that the best performing  KPIs were Water Quality, Hours of Supply, O& M Cost Coverage and Staff/1,000 W&S Connections while the worst performing KPIs continued to be Sewerage Coverage and NRW.

 The report recommends an urgent and critical need for Governments to direct investments to extending service coverage and hours of supply if the Sustainable Development Goals (SDGs) are to be met. Further, Utilities are implored upon to devise innovations and strategies to contain costs, reduce water losses and improve collections for financial viability.

 

 

In the second ESAWAS Strategic Plan for the period 2016-2018, under Objective 2 ‘to facilitate experience and knowledge transfer’ a key focus area is to ‘Undertake technical regulatory exchange programmes’. The technical exchange programmes are meant to bring together technical experts in a particular regulatory area to a single podium to share experiences and therefrom develop good practices for use by members.


In fulfilment of the Strategic Plan Objective, ESAWAS held a technical regulatory exchange workshop on Tariff Setting from 28th -29th July, 2016 in Lusaka, Zambia.

Tariff Setting is a core activity of the regulator. The tariff setting practice invariably affects the make-up of the sector in terms of sustainability, affordability and quality of service provision. Hence regulators have an interest to adopt good practices in tariff setting that will foster efficiency and viability of providers while guaranteeing an affordable and quality service for the consumer.

The technical exchange meeting aimed to identify good practices in the following areas:  

·         Key principles in setting tariff structure e.g. affordability, equity, equality etc
·         Tariff setting procedures and process
·         Costs to be covered by revenue, i.e. cost items, recording realised/incurred costs (accrual accounting?),    approach for projections (assumptions, inflation etc) 
·         Performance indicators in tariff setting e.g. collection efficiency, NRW etc
·         Revenue calculations – recording realised revenue and consumptions, approach for projections (assumptions, NRW)
·         Method of tariff/price calculation, i.e. price-cap, rate of return, cost-plus etc
·         Tariff Structure components and calculation – fixed charge, meter charge, sewer charge, other charges
·         Tariff implementation
·         Evaluating impact of tariff 


The recommendations made from the meeting were:

·         Develop an ESAWAS handbook for tariff setting that will outline in detail the good practices.
·         Develop an ESAWAS WSS Regulatory Accounting Guideline to harmonise cost items and their treatment.

 

 

DDG ZURA ratifies ESAWAS ConstitutionThe Zanzibar Utilities Regulatory Authority (ZURA) became the eighth member of the ESAWAS Regulators Association. This was at the 10th AGM of ESAWAS, held in Dar es Salaam, Tanzania in November 2016.

The multi-utility regulator which begun operations in 2015 was attending the ESAWAS general conference for the first time. Speaking at the ratification of the ESAWAS Constitution by ZURA, ESAWAS Chairperson Mr Magalhaes Miguel welcomed ZURA to the Association. ESAWAS offers numerous benefits to members including knowledge-sharing and experience transfer. Mr Miguel assured ZURA of support from all ESAWAS members as it finds its feet in regulating water supply and sanitation.

ZURA represented by its Deputy Director General, Mr Hemed Salim, thanked the ESAWAS Association for incorporating the new regulator in their membership.

Zanzibar Utilities Regulatory Authority (ZURA) is an autonomous multi-sectoral regulatory authority established under Act No. 7/2013 of the Laws of Zanzibar. It is responsible for technical and economic regulation of the electricity, petroleum, natural gas and water sectors in Zanzibar.

 

 

The ESAWAS Regulators Association has published its second regional benchmarking report for large WSS Utilities regulated by its members.

The second benchmarking report presents an analysis of the performance of the largest water and sewerage Utilities for the period 2014/2015, in each member country of ESAWAS which were: Lusaka Water and Sewerage Company (Zambia); Nairobi City Water and Sewerage Company (Kenya); Dar Es Salaam Water and Sewerage Corporation (Tanzania); Águas da Região de Maputo (Mozambique); Water and Sewerage Company (Lesotho); Water and Sanitation Corporation (Rwanda).

The analysis of the performance of the six water and sewerage Utilities was done against ten key performance indicators with benchmarks defined by ESAWAS. The key performance indicators were grouped according to similarity in the components of Quality of Service, Economic Efficiency and Operational Sustainability. Finally the performance of the Utilities was ranked using an integrated measurement of performance in the aforementioned components, called the Water Utility Performance Index.

For the second year in a row, the main results from the benchmarking analysis highlight a performance disparity by the Utilities among the components of quality of service, economic efficiency and operational sustainability. A number of the Utilities performed well in one component and poorly in one or two of the others. In overall, the report shows that the best performing KPIs were Staff/1000 Connections and Collection Efficiency while the worst performing KPIs were O&M Cost Coverage and NRW.

The report recommends a strong focus by all stakeholders to mobilising investment to particularly improve performance in the indicators related to the Quality of Service, that is, hours of water supply and service coverage.

Download the Report

 

 

 

Event: ESAWAS 11th Annual Conference
Location: Livingstone, Zambia
Venue: The David Livingstone Hotel
Dates: 1st - 3rd November

Participation: Free
Contact: secretariat@esawas.org

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