Abstract
In 1994, a far-reaching reform of water and sanitation utilities was launched. Integration, industrialisation, self-sufficiency and cost-recovery were its keywords. Initially welcomed by an overwhelming consensus, the reform soon met implementation difficulties and experienced piecemeal application. In 2011, following a popular referendum, fundamental innovations in the regulatory system were introduced. This chapter reviews the industrial development (governance, arrangements, price regulations) through legislation, the establishment of an independent regulatory authority, and the impact of all these factors on prices, performance, investment and quality improvements.
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Notes
- 1.
Directive 91/271/EEC of 21 May 1991 concerning urban waste-water treatment.
- 2.
There was no restriction with regard to public capital transfers.
- 3.
Law no. 448/2001. A Financial Law (Legge finanziaria) is a law, enacted on a yearly basis, whereby the Italian Parliament plans the Country’s economic policy of the next few years.
- 4.
On the principles governing the assignment of a service contract see, in this volume, Chap. 13 by Parisio.
- 5.
Except for Trentino-Alto Adige, extraneous to the regulation due to its special statute under Italian law.
- 6.
These are characterised by a certain heterogeneity, with the widespread prevalence of administrative criteria rather than orographic ones.
- 7.
Law no. 205/2017 attributed to the Authority the functions of regulating and controlling the waste cycle, including separated, urban and related waste, to be exercised “with the same powers and in the framework of the principles, the purposes and the powers, also including penalties, set by Law no. 481 of 14 November 1995 and already exercised in the sectors of competence”.
- 8.
Law no. 190/2014. “Stability Law” (Legge di stabilità) is another – and, officially, the current – name for the already mentioned Financial Law, that is, a law whereby Italy’s economic policy of the next few years is planned by the legislature together with the Government.
- 9.
On the tariff method see also, in this volume, Chap. 17 by Massarutto.
- 10.
The subsequent provision on account unbundling of 2016 has moved in this direction, as it requests operators to report separately the costs of the various stages of the water supply chain from the activities carried out.
- 11.
Analysis of the programme of interventions of a sample of 74 water operators serving a population of 34.8 million inhabitants (more than half the Italian population).
- 12.
On the water bonus, and the human right to water more generally, see, in this volume, Chap. 11 by Turrini and Pertile.
Further Readings
Ermano, P. (2012). Gli investimenti nel servizio idrico in Italia: un’analisi storica. Università degli Studi di Udine. www.dies.uniud.it.
Guerrini, A., & Romano, G. (2013). The process of tariff setting in an unstable legal framework: An Italian case study. Utilities Policy, 24, 78–85.
Guerrini, A., & Romano, G. (2014). Water management in Italy: Governance, performance, and sustainability. Cham: Springer.
Massarutto, A. (1994). La legge Galli: una rivoluzione per i servizi idrici? Economia delle Fonti di Energia e dell’Ambiente, 37(1), 15–31.
Massarutto, A. (2001). Water institutions and management in Italy. Università degli studi di Udine, Dipartimento di Economia, working paper No. 01-01.
Massarutto, A. (2005). La legge Galli alla prova dei fatti: riflessioni su una riforma incompiuta. Economia delle Fonti di Energia e dell’Ambiente, 3, 87–110.
Massarutto, A., & Ermano, P. (2013). Drowned in an inch of water: How poor regulation has weakened the Italian water reform. Utilities Policy, 24, 20–31.
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Berardi, D., Casarico, F., Traini, S. (2021). The Evolution of the Italian Water and Wastewater Industry in the Period 1994–2018. In: Turrini, P., Massarutto, A., Pertile, M., de Carli, A. (eds) Water Law, Policy and Economics in Italy . Global Issues in Water Policy, vol 28. Springer, Cham. https://doi.org/10.1007/978-3-030-69075-5_14
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