The new Italian water tariff method: A launching point for novel infrastructures or a backwards step? |
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| Affiliation: | 1. Department of Economics and Management, University of Pisa, Via C. Ridolfi, 10, 56124 Pisa, Italy;2. Department of Business Administration, University of Verona, Via dell''Artigliere, 19, 37129 Verona, Italy;1. Cardiff Business School and Dwr Cymru, United Kingdom;2. Cardiff Business School, Cardiff University, Aberconway Building, Colum Drive, Cardiff CF10 3EU, United Kingdom;1. Department of Finance, The School of Business, The University of Jordan, Amman, Jordan;2. Fulbright Visiting Scholar at Virginia Tech University, Blacksburg, Virginia, USA;3. Water, Energy and Environment Center, The University of Jordan, Amman, Jordan;4. Department of Production Engineering, KTH Royal Institute of Technology, Brinellvagen 68, SE-100 44, Stockholm, Sweden;1. Finance Division, Babson College, 220 Tomasso Hall, Babson Park, MA 02457, USA;2. Finance Division, Babson College, 222 Tomasso Hall, Babson Park, MA 02457, USA;1. Oviedo Efficiency Group, Department of Economics, University of Oviedo, Spain;2. Department of Applied Economics II, University of Valencia, Spain;1. University of Florence, Florence, Italy;2. University of Rome Tor Vergata, Rome, Italy;3. University of L’Aquila, L’Aquila, Italy;4. Universitade Paulista, San Paolo, Brazil |
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| Abstract: | In Italy recently the regulatory authority for electricity, gas and the water industry was mandated to design a new tariff method more consistent with EU standards of ‘full cost recovery’ and the ‘polluter pays’ rules. This paper attempts to highlight the strengths and limitations of this new method, its actual effects on tariffs, financial plans and utilities' investment policy, compared to the previous method, with a focus on the effects of the tariff method for both users and utilities. A case study was selected and this included the biggest water utility controlled by the local water authority in Verona province. |
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| Keywords: | Water tariff Water utilities Water price Water reform Case study Italy |
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