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Oxera leads a workshop on regulatory options for incentivising efficiency in the Italian water sector

On 1 April, Dr Leonardo Mautino, Alan Horncastle, Giordano Colarullo and Pierpaolo Perna ran a workshop on regulatory options aimed at improving the performance of Italian water companies. The workshop was held at the Rome office of Federutility (the association of Italian local public utilities for water, gas and electricity), with the participation of a group of Italian water companies and their economic regulator, Autorit√† per l'energia elettrica il gas ed il sistema idrico (AEEGSI).
During the event, the Oxera team outlined the key techniques generally used to estimate efficient cost levels in a regulatory environment, focusing on selection criteria and data requirements in the Italian water context. Oxera presented some potential strategies to incentivise water companies’ efficiency, which formed the basis for discussion about potential short- and long-term regulatory developments.‚Äč During these discussions participants identified a number of areas that may be worth exploring in more depth.