Water Services: Arera publishes the New Tariff Method and tries to respond to climate challenges

News for the Water system: Area closes 2023 with two new resolutions that confirm the commitment to continuous improvement of Quality of the service, with a look at the challenges of climate change and new objectives for Energy and environmental sustainability.

With the resolution 639/2023, the Authority approves the Water Tariff Method for the fourth regulatory period 2024-2029 (MTI-4), through which it wants to further encourage spending on investments and support the continued effort towards’Management efficiency and Quality service. The guiding criteria and objectives for reducing service disparities between different regions of the country, already initiated in 2012, are therefore confirmed. Among the new elements included is the duration of the MTI: 6 years, from 2024 to 2029, compared to the 4 from MTI3, with a biennial update of the tariff provisions to be communicated at a later date. The appeal to Regulatory Convergence Framework reserved, however, exclusively for new area managers commencing in 2022 and for protected Municipalities that did not have access to the Convergence Regulatory Scheme in the previous regulatory period. It should be noted that for the purposes of determining the fees, the collection and disposal of rainwater and urban drainage activities, through dedicated infrastructure, may also be included in the Integrated Water Service.

Also planned is a Update of the Strategic Works Plan (POS) until 2035, to promote the security of water supplies on the one hand, and to stimulate greater cooperation at different planning levels on the other. Another new development concerns an update to the component covering the cost of electricity in response to the strong fluctuations recorded in recent years. And finally, a look at Energy and environmental sustainability with an initial use of the resources of the Innovation Promotion Fund for the reuse of treated wastewater and the reduction of purchased electricity.

Another important resolution is the 637/2023 with which Arera makes amendments to the Technical quality adjustment of the integrated water service (RQTI), in response to the current challenges facing society, foremost among which is climate change. Indeed, among the planned innovations, the document introduces a new macro-indicator (Water resiliencewith which the Authority will measure the operators' interventions to counter the effects of climate change and ensure the supply of water resources.

 

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Photo by Kelly Sikkema on Unsplash

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