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The new Italian water tariff method: A launching point for novel infrastructures or a backwards step?

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  • Romano, Giulia
  • Guerrini, Andrea
  • Campedelli, Bettina

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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  • Romano, Giulia & Guerrini, Andrea & Campedelli, Bettina, 2015. "The new Italian water tariff method: A launching point for novel infrastructures or a backwards step?," Utilities Policy, Elsevier, vol. 34(C), pages 45-53.
    • Handle: RePEc:eee:juipol:v:34:y:2015:i:c:p:45-53
    DOI: 10.1016/j.jup.2015.01.003
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    References listed on IDEAS

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    13. Massarutto, Antonio & Ermano, Paolo, 2013. "Drowned in an inch of water," Utilities Policy, Elsevier, vol. 24(C), pages 20-31.
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    1. Giulia Romano & Andrea Guerrini, 2019. "Paying Returns to Shareholders of Water Utilities: Evidence from Italy," Sustainability, MDPI, vol. 11(7), pages 1-12, April.
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    3. D'Amore, Gabriella & Landriani, Loris & Lepore, Luigi, 2021. "Ownership and sustainability of Italian water utilities: The stakeholder role," Utilities Policy, Elsevier, vol. 71(C).
    4. Guerrini, Andrea & Molinos-Senante, María & Romano, Giulia, 2018. "Italian regulatory reform and water utility performance: An impact analysis," Utilities Policy, Elsevier, vol. 52(C), pages 95-102.
    5. Piubello Orsini, Luca & Leardini, Chiara & Danesi, Letizia & Guerrini, Andrea & Frison, Nicola, 2023. "Circular economy in the water and wastewater sector: Tariff impact and financial performance of SMARTechs," Utilities Policy, Elsevier, vol. 83(C).
    6. Romano, Giulia & Guerrini, Andrea & Senoner, Thomas, 2020. "Establishing a new water tariff method that complies with european principles and respects statutory autonomy: The case of South Tyrol," Utilities Policy, Elsevier, vol. 64(C).
    7. D’Inverno, Giovanna & Carosi, Laura & Romano, Giulia, 2021. "Environmental sustainability and service quality beyond economic and financial indicators: A performance evaluation of Italian water utilities," Socio-Economic Planning Sciences, Elsevier, vol. 75(C).
    8. Cooper, Bethany & Crase, Lin, 2016. "Governing water service provision: Lessons from Australia," Utilities Policy, Elsevier, vol. 43(PA), pages 42-47.

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