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Order No. 231 of the of the National Regulatory Authority for Community Services of Public Utilities regarding the approval of the Methodology for evaluating the implementation of the pricing strategies developed in accordance with the Cost-Benefit Analysis Methodology for investments in water infrastructure, approved by Government Decision no. 677/2017.

Country/Territory
Romania
Document type
Regulation
Date
2022
Source
FAO, FAOLEX
Subject
Water
Keyword
Financing Water supply Sewerage Water charges Local government Enforcement/compliance
Geographical area
Black Sea, Eastern Europe, Europe, Europe and Central Asia, European Union Countries
Abstract

This Methodology regulates the evaluation procedure by the National Regulatory Authority for Public Utilities Community Services of how to implement the pricing strategies developed in accordance with the Cost-Benefit Analysis Methodology for investments in water infrastructure. The implementation of the pricing strategies is carried out through the business plans prepared by the operators/regional operators in cooperation with the local public administration authorities or with the inter-community development associations, as the case may be. The business plan through which the tariff strategy is implemented must ensure the economic viability of the operator/regional operator, the sustainability of the supply/provision of the water supply service, the interests of the users, including in terms of their affordability, as well as the protection of the environment regarding the conservation of water resources. This Methodology applies to operators/regional operators that provide/provide water supply and sewerage services, under direct management. The business plan implementing the pricing strategy for the remaining economic regulatory period contains at least the following elements: (a) strategic aspects regarding the development of water supply and sewerage services/activities: mission, vision, strategic objectives regarding operation, development and investments, targets regarding compliance with European directives transposed into national legislation; (b) analysis and forecasting of demand and customers; (c) analysis and forecast of operating costs; (d) analysis and forecast of depreciation and royalty expenses, including royalty strategy; (e) measures to increase the efficiency of the operation; (f) analysis and forecast regarding affordability; (g) the investment plan; (h) profit forecast; and (i) estimates regarding the need to review the pricing strategy, if applicable.

Full text
Romanian
Website
www.anrsc.ro

References - Legislation

Implements

Government Decision No. 677/2017 regarding the approval of the Methodology of cost-benefit analysis for investments in water infrastructure.

Legislation | Romania | 2017

Keyword: Financing, Water supply, Sewerage, Potable water, Water charges, Subsidy/incentive, Local government, Consumer protection

Source: FAO, FAOLEX