Rationalizing Tariff for Private Water Utilities under the National Water Resources Board

This PDA introduced policy reforms to the Philippines' National Water Resources Board (NWRB) to enhance its economic regulation functions through capacity building activities for improving water supply services delivery.

Report Card

Completed in March 2005, this PDA

  • Involved clients and other water sector stakeholders in the consultations, including water utilities and consumers, several of whom proposed solutions and recommendations to improving NWRB’s tariff setting methodology
  • Resulted in a new tariff system that was acceptable to all stakeholders, and helped in increasing NWRB’s client base
  • Compiled and documented the training modules, consultation guidelines, and design methodologies and processes used in the activity, ready for dissemination and possible replication in other water regulatory bodies in the region

Read the Final Report. [ PDF ]

Description

The National Water Resources Board (NWRB) is the government coordinating agency for all water resources development activities. Its jurisdictional powers, functions and duties include the

  • supervision and control of all waterworks utilities, and their franchises and other properties
  • regulation and setting of water rates to be charged by waterworks operators

NWRB's responsibility for tariff regulation recently expanded to include water districts, water systems run by local governments, and private water utility operators except those covered by special concession and joint venture agreements. Given its extensive mandate, NWRB requires enhancement of its capabilities, particularly in the areas of tariff setting and review activities, especially for private water utility operators, monitoring of financial performance of water operators, and economic regulation.

Expected Outcome

  • Empowered NWRB through the enhancement of its economic regulation functions and capacity building of its staff
  • Appropriate levels of tariffs consistent with agreed levels of service
  • Empowerment of consumers resulting from published information and benchmarking of operational performance of their private water utility operators