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Il trattamento della remunerazione degli investimenti nell’approccio alla regolazione di OFWAT: implicazioni sull’efficienza e possibili applicazioni al caso italiano
Author/s: Andrea Moisello 
Year:  2014 Issue: Language: Italian 
Pages:  16 Pg. 351-366 FullText PDF:  133 KB
DOI:  10.3280/ED2014-003003
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For capital intensive industries, like water sector, regulation on investment returns has strong implication on efficiency. In OFWAT regulation approach this aspect is strictly related to the Price Review process: every five years OFWAT sets the price limits that companies can charge to their customers, which are functions of many variables, including the level of investment. This work has the goal of analysing the incentive mechanism implemented by OFWAT for the Price Review process, inducing companies to submit Business Plans which include fair and efficient levels of investment from social point of view. Actually, empirical evidence leads to suppose that water and sewerage sector are affected by Capex Bias, which occurs when capital expenditure is chosen inappropriately over operating expenditure: we focus on the possible tools to affect Capex Bias. We conclude this work with some considerations over the possible application of OFWAT incentive mechanism to the Italian context.
Keywords: Return of on investments, efficiency.
Jel Code: L 95G3.

  1. “Future water and sewerage charges 2010-15: Final determinations”, OFWAT, novembre 2009.
  2. “Valuing Water: How upstream markets could deliver for consumers and the environment”, OFWAT, luglio 2010.
  3. “The role and design of incentives for regulating monopoly water and sewerage services in England and Wales”, OFWAT, ottobre 2011.
  4. “Financeability and financing the asset base”, OFWAT, marzo 2011.
  5. “Capex bias in the water and sewerage sectors in England and Wales – substance, perception or myth?”, OFWAT, maggio 2011.

Andrea Moisello, in "ECONOMIA E DIRITTO DEL TERZIARIO " 3/2014, pp. 351-366, DOI:10.3280/ED2014-003003


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