Efficiency in the water industry

This paper considers the use of efficiency measurement in the regulation of the water industry in England, Wales, and Scotland. Ofwat employs econometric models; some examples of these are provided together with an explanation of the way Ofwat applies them to the financial model for each company. Finally we consider the question of the accuracy of these models and conclude that, while the models probably do contain information about companies' scope for cost reductions, Ofwat probably overestimates the quality of its models. Specifically Ofwat's estimate that 90% of the water model residuals and 80% of the sewerages models can be attributed to efficiency has not been given an explicit justification and probably overstates the case.     

A regulatory robust conditional approach to measuring the efficiency of wholesale water supply and wastewater treatment services

A benchmarking evaluation instrument was designed with a European Union country regulatory authority for water supply and wastewater treatment services to determine the efficient operating cost of its service providers that operated in the wholesale market segment in the 2017–2021 period. To this end, the non-parametric Data Envelopment Analysis technique was adapted to a robust and conditional approach. The results point to similar mean efficiency scores between water supply and wastewater services in the five-year period, despite the greater heterogeneity in the latter. Furthermore, the estimated potential cost savings for both services ranged from about 2% to 3%.     

Model for evaluating the efficiency of Russian water utilities

The objective of this study is to assess the efficiency of Russian water utilities based on a set of characteristic indicators. The novelty of the research is in the application of tools of the theory of economic “growth points” for analyzing water utility performance. The generalized development of a water utility is defined in terms of the efficiency of external and internal resources use. Conclusions on the development of water utilities in the six regional administrative centers of Siberia (Barnaul, Chita, Irkutsk, Novosibirsk, Omsk and Tomsk) in the 2013–2016 period were made.     

Productivity of wastewater treatment plants in the Valencia Region of Spain

This study analyses the evolution of productivity over the 2008–2012 period for a homogenous set of 199 wastewater treatment plants that are located in the Valencia Region of Spain and utilize the same treatment technology, using the smoothed bootstrap Malmquist productivity index based on Data Envelopment Analysis (DEA). The results reveal a negative trend in productivity that is mainly the result of resource management rather than an inappropriate level of innovation or use of new technologies. In addition, the effect of exogenous factors on productivity is analysed using the Kruskal-Wallis (KW) test, finding that productivity levels were affected by the quality of the influent water and the size of the plants, but not by the other factors considered.     

Reform and efficiency of New Zealand's airports

The paper analyses the efficiency performance of New Zealand's airports in the context of structural reform. This study is in two parts using two separate databases. In the first part a Malmquist Data Envelopment Analysis approach is used to estimate the productivity change over the longer term of the country's three largest airports between 1991/92 and 2011/12. Partial productivity indicators are used to supplement and reinforce this analysis. In the second part, a separate database is used with Data Envelopment Analysis in a two-stage process to determine the impact of scale economies and ownership type on levels of efficiency. The first part of the study found that the efficiency and productivity of the three airports improved over the years, although this was influenced to some degree by locational factors. The second part of the study found that the larger airports were more efficient than the smaller ones, and jointly owned airports are somewhat less efficient. Productivity gains appear to enable airport expansion, rather than price reductions.     

Changes in the total costs of the English and Welsh water and sewerage industry: The decomposed effect of price and quantity inputs on efficiency

Understanding what drives changes in regulated water companies' costs is of great relevance to water regulators. This study decomposes and estimates the change in total costs for a sample of ten water and sewerage companies in England and Wales from 1993 to 2016. The results demonstrate that companies' total costs increased over time due to increases in input prices and input quantity. Any gains obtained from the efficient allocation of resources and technical progress were lost due to mergers and technical inefficiency. Finally, we link our results with the regulatory cycle to evaluate the impact of the regulatory regime on companies' costs and discuss some policy implications.     

Quo vadis efficiency analysis of water distribution? A comparative literature review

Recognizing the growing importance of scientific benchmarking in water distribution, we provide a comprehensive survey of the available literature. We begin with a discussion about the (limited) use of benchmarking in the regulation of UK water utilities, and then extend the analysis to regulated water sectors in other countries. We find no clear impact of public or private ownership; instead, the institutional settings appear to be a dominant driver of efficiency. Quality and structural variables are significant parameters; and water losses and population density are also important drivers. Analysis reveals that economies of scale only exist in fragmented water industries, whereas economies of density are omnipresent. We find evidence suggesting important economies of scope (e.g. between water and sewerage). Finally, we summarize the tensions that exist in attempting to measure efficiency in the water industry and draw conclusions about how to improve efficiency analysis in the future.     

Performance assessment of water supply and wastewater systems

This paper addresses the issue of performance assessment in water and wastewater systems by reviewing two of the tools that are available to the companies operating in this field: systems of performance indicators and technical performance assessment through simulation. The paper focuses on a technical performance evaluation framework and its application to wastewater systems. The assessment is carried out through the application of utility functions to the network's elements, and the production of performance-oriented graphs that yield concise and informative views about the system's behaviour. Two case studies involving a combined sewer system and a separate domestic system are presented in order to illustrate the method.     

Productivity in buildings: the 'killer' variables

Losses or gains of up to 15% of turnover in a typical office organization might be attributable to the design, management and use of the indoor environment. There is growing evidence to show that associations between perceived productivity and clusters of factors such as comfort, health and satisfaction of staff. Some of the management, design and use characteristics which contribute towards better energy efficiency also help productivity, thereby helping to close the loop on a potential 'virtuous' circle. Unfortunately, the vast majority of occupied buildings do not have these self-reinforcing qualities and many are unmanageably complex. This paper examines which factors within the control of building designers and managers best contribute to human productivity- the 'killer' variables of the title. L'etude, la gestion et l'utilisation de l'environnement interieur peuvent etre a l'origine de pertes ou de gains pouvant atteindre 15% de la rotation du personnel d'une organisation administrative. Il apparait de plus en plus qu'il existe des liens entre la productivite percue et des groupes de facteurs tels que le confort, l'hygiene et la satisfaction du personnel. Quelques unes des caracteristiques de gestion, de conception et d'utilisation qui contribuent a un meilleur rendement energetique sont egalement benefiques pour la productivite, ce qui permet de fermer la boucle d'un cercle vertueux potentiel. Malheureusement, la grande majorite des batiments occupes ne possedent pas ces qualites d'autorenforcement et dans de nombreux cas, sont impossibles a gerer de par leur complexite. Cet article examine quels sont les facteurs que peuvent maitriser les architectes et les responsables et qui peuvent contribuer au mieux a la productivite de l'Homme (les variables majeures du titre).     

Productivity in buildings: the ‘killer’ variables

Losses or gains of up to 15% of turnover in a typical office organization might be attributable to the design, management and use of the indoor environment. There is growing evidence to show that associations between perceived productivity and clusters of factors such as comfort, health and satisfaction of staff. Some of the management, design and use characteristics which contribute towards better energy efficiency also help productivity, thereby helping to close the loop on a potential ‘virtuous’ circle. Unfortunately, the vast majority of occupied buildings do not have these self-reinforcing qualities and many are unmanageably complex. This paper examines which factors within the control of building designers and managers best contribute to human productivity - the ‘killer’ variables of the title.

L'étude, la gestion et l'utilisation de l'environnement intérieur peuvent être á l'origine de pertes ou de gains pouvant atteindre 15% de la rotation du personnel d'une organisation administrative. Il apparaít de plus en plus qu'il existe des liens entre la productivité perçue et des groupes de facteurs tels que le confort, l'hygiène et la satisfaction du personnel. Quelques unes des caractéristiques de gestion, de conception et d'utilisation qui contribuent à un meilleur rendement énergétique sont également benéfiques pour la productivité, ce qui permet de fermer la boucle d'un cercle vertueux potentiel. Malheureusement, la grande majorité des bâtiments occupés ne possèdent pas ces qualités d'autorenforcement et dans de nombreux cas, sont impossibles à gérer de par leur complexité. Cet article examine quels sont les facteurs que peuvent maîtriser les architectes et les responsables et qui peuvent contribuer au mieux à la productivité de l'Homme (les variables majeures du titre).     

Impact of external costs of unplanned supply interruptions on water company efficiency: Evidence from Chile

Conventional performance assessments of water companies ignore the external costs due to water supply outages. To overcome this gap, we evaluate the impact of external costs of unplanned supply interruptions on the efficiency of water companies. Two efficiency metrics, internal technical efficiency (ITE), and total technical efficiency (TTE), were estimated based on data envelopment analysis (DEA). The results evidence that the external costs of unplanned water supply interruptions impact, on average, 7.9% of the efficiency of water companies. We also explored the impact of a set of environmental variables on water company efficiency.     

Assessing capital efficiency in the water and sewerage industry in England and Wales: Ofwat's approach

The Water Services Regulation Authority (Ofwat) is the economic regulator of the water and sewerage companies in England and Wales. Ofwat carries out regular annual reviews of relative capital efficiency and periodic reviews of prices charged by the companies to determine maximum price limits. In reaching these determinations, the most recent of which was in December 2004 (PR04), Ofwat assumed that the companies can, going forward, make some capital efficiencies. Ofwat assessed the scope for such efficiencies in each company by analysing their capital and operating expenditure and outputs, comparing their unit capital costs, making econometric comparisons of their capital maintenance costs and assessing the scope for continuing capital productivity improvement in the water and comparator sectors. Three separate tools used by Ofwat for assessing capital efficiency are described; the cost base (for capital unit costs), capital maintenance econometric models and ‘continuing efficiency’. The paper notes how these three tools were used in combination for price limit assumptions in 2004.     

Has efficiency improved after the decentralization in the water industry in Venezuela?

The importance of water in life and health of population, especially in developing countries, justifies the comparative study of the performance of undertakings providing potable water and waste water collection. The main objective of this research is to investigate if the decentralization process has led to an improvement of the efficiency in the water industry. Using a stochastic frontier analysis, we show that technical efficiency of Venezuelan water companies remained around 84% and that decentralized companies were more efficient than the centralized ones. The main policy recommendation is that the process of decentralization in the water services should continue.     

Profit productivity change in the English and Welsh water sector: Impact of the price reviews

Profitability and productivity change over time are two key indicators to evaluate the performance of water companies. In this study, the profit inefficiency of water utilities was estimated based on the Luenberger Productivity Indicator (LPI). The empirical approach focused on the English and Welsh water industry from 2001 to 2018. It was illustrated that water companies suffered a profit inefficiency effect of 50%, mainly (44%) attributed to allocation inefficiency, whereas technical inefficiency contributed by 6%. Estimated profit LPI values revealed the impact of the price reviews on the profit productivity of the English and Welsh water companies.     

从漳州市中心城区给水专项规划刍议城市给水工程规划用水量规模的确定

水是生命之源,城市给水系统是保证城市、工矿企业等用水的各项构筑物和输配水管网组成的系统,水在日常和生产生活中占有极其重要的地位,确定城市给水工程规划水量规模十分重要,本文就城市给水规划如何预测用水量等有关问题结合我市给水工程规划工程予以探讨。     

贵州村镇供水工程净水技术的选择

分析了贵州村镇供水工程现状及特点,并结合我省供水工程运行经验,提出适用于贵州村镇的净水技术,有利于保障居民饮用水安全、提高供水水质、降低供水成本,保证供水工程能取得良好的社会、经济、环境效益。     

Comparing microbial water quality in an intermittent and continuous piped water supply

Supplying piped water intermittently is a common practice throughout the world that increases the risk of microbial contamination through multiple mechanisms. Converting an intermittent supply to a continuous supply has the potential to improve the quality of water delivered to consumers. To understand the effects of this upgrade on water quality, we tested samples from reservoirs, consumer taps, and drinking water provided by households (e.g. from storage containers) from an intermittent and continuous supply in Hubli–Dharwad, India, over one year. Water samples were tested for total coliform, Escherichia coli, turbidity, free chlorine, and combined chlorine. While water quality was similar at service reservoirs supplying the continuous and intermittent sections of the network, indicator bacteria were detected more frequently and at higher concentrations in samples from taps supplied intermittently compared to those supplied continuously (p < 0.01). Detection of E. coli was rare in continuous supply, with 0.7% of tap samples positive compared to 31.7% of intermittent water supply tap samples positive for E. coli. In samples from both continuously and intermittently supplied taps, higher concentrations of total coliform were measured after rainfall events. While source water quality declined slightly during the rainy season, only tap water from intermittent supply had significantly more indicator bacteria throughout the rainy season compared to the dry season. Drinking water samples provided by households in both continuous and intermittent supplies had higher concentrations of indicator bacteria than samples collected directly from taps. Most households with continuous supply continued to store water for drinking, resulting in re-contamination, which may reduce the benefits to water quality of converting to continuous supply.     

Efficiency and pricing of water supply and sewerage services in Japan

This paper investigates the technical efficiency of Japanese water supply and sewerage services using data envelopment analysis (DEA). We then apply regression analysis to explore the interactions between the efficiencies of water supply and sewerage services on both their own prices and those of the other service. All other things being equal, the results indicate a positive relationship between the efficiency of water supply services and the prices for sewerage services, but no relationship between the efficiencies of sewerage services and the prices of water supply services.     

Trends in productivity improvement in the US construction industry

Surveys of the top 400 US contractors were conducted in 1979, 1983 and 1993 to identify the areas with potential for productivity improvement in the construction industry. The trends in the findings of these surveys are observed and interpreted. The results indicate that cost control, scheduling, design practices, labour training, and quality control are the functions that consistently over the years are perceived as having considerable room for productivity improvement, whereas materials packaging and foreign developments in construction technologies are perceived consistently as functions that do not have much effect on improving construction productivity. The functions that were identified as needing more improvement in 1993 compared with the previous surveys were prefabrication, new materials, value engineering, specifications, labour availability, labour training, and quality control, whereas those that were identified as needing less improvement than in the previous surveys were field inspection and labour contract agreements. Also, respondents indicated consistently over the years that they are willing to participate in activities related to improving construction productivity but are not interested in funding any such activities.