Regulating water tariffs in republic of Macedonia: initial assessment
Regulating water tariffs in republic of Macedonia: initial assessment

Summary/Abstract: Following establishing a national regulator on water services in the Republic of Macedonia in 2016, the newly regulated water tariffs for water utilities providing services to more than 10.000 p.e. have been put in place as of January 2018. This paper aims to present an initial assessment of the impact that new regulated tariffs would have over the efforts to improve sector performance. The findings suggest that new tariffs respect full cost recovery principle and affordability threshold, however, they failed to consider current performances nor provide incentives for performance improvement. Thus, the national regulator is called to establish clear performance targets which will stimulate increased efficiency and customer protection, but also encourage water companies to introduce system for continual improvement.

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